This is a complicated conversion because it has not been developed by a single person, so it is difficult to give an A-Z answer. Pat Manning and another owner have been working on this mod for a few years. The first attempt uses exactly the same components that you are using. They made modifications to allow the primary driveline to be moved in as far as possible.
View attachment 49711
The primary cover would need to be moved outwards by more than 1/2". This seemed to be too much as the drive could be moved in further, but not with the original parts.
The second iteration was done by purchasing a larger size engine sprocket that is closer to the stock primary ratio. This allowed the engine sprocket to be flipped around so the offset was on the inside rather than the outside. The larger sprocket allowed the bearing journal to be cleared by the extra space provided by the larger diameter sprocket and the flat side of the sprocket being moved to the outside.
The result was that everything moved further in. The end of the clutch shaft had to be shortened, but the cover fits well with a 1/2" spacer.
View attachment 49712
The HRD engine got this second iteration. If you look just above the cap and to the left, you can see the lines of the 1/2" spacer. The stock primary cover fits well and the clutch cover could be replaced by a flat plate because the clutch is well inboard. The baffle on the inside of the cover needs to be removed.
Both engines have been run and shifted while mounted to a jig, so they appear to perform well. I think a 1/2" spacer is near the limit of the extra width that a rider would want.
