A question more or less because my bike has had various things screwed up before I got it last year (some of which I'm still finding), and the transportation gods are frowning on me, so I'm trying to be a little extra-paranoid lest they bite me again.
From the outer face of your rear sprocket to the inner face of your swingarm, what's the space? I have about half an inch. It looks snuggish, though nothing is hitting. I didn't measure it with the old sprocket before I took it all apart and put it back together. I don't believe I've misplaced any spacers, and the chainline looks straight.
I'll go measure mine real quick.
Here is my 1990:
(http://i579.photobucket.com/albums/ss239/rtarpley/rearSprocket001.jpg)
and the 2004:
(http://i579.photobucket.com/albums/ss239/rtarpley/rearSprocket002.jpg)
They are close as you describe but there is room?
I hope that puts your mind at ease. That would be the correct clearance.