Well, I've broken down and decided to ask for help. 

I've assembled the rear cush-drive as according to this diagram:
http://www.bikebandit.com/suzuki-motorcycle-gs500ep-1993/o/m6053

I've got the "hat" looking spacer on the correct side, facing the correct way.  I've put all the bearings in, and the rubber seal on the sprocket side, along with the spacer.  I didn't quite seat the most outward bearing on the drive itself, by maybe about 1/8 of an inch, before I put in the rubber seal.  The spacer on that side is sticking out by about that far (but I know it's supposed to stick out past the rubber seal by about that much, anyway. 
My problem is:  I've got about 1/4" on either side between each side of the wheel assembly and the swing arm (or 1/2" on one side, however you want to say it).  I could take a picture, but I don't think it's necesary.  Basically, you can stick your finger in the space between either side of the wheel and the swingarm (if the other side is touching correctly.    What am I missing? 

I think you need a picture. If you've put everything in according to the diagram, and your 100% sure, the wheel doesnt move from side to side? Then what can be wrong. I suggest you have to go back to the diagram. Make sure you've got the right spacers on the right sides and oriented the right way. If you've got extra space either side (you think you have anyway) then that must be a case of something not fitting properly inside another thing.

On the last picture, the other side of the assembly is pressed against the swingarm (with the "hat" spacer included in between).


Yes, I used to be a hand model for Calvin Klein.  I'm very sensitive about it, please don't bring it up. 

Installed first wheel bearing, size 6303-2RS
Inserted "spacer" in center of wheel
Installed second bearing on the other side, same part number
Installed rubber cushions
Pressed bearing (size 6305-2RS) into "hub outrigger" or whatever it's called
Bolted on the sprocket
Flipped it over and put in the spacer that looks like a tuba mouthpiece, with some grease to hold it in place
Pressed that into the wheel, aligned with the rubber cushions
Pressed on the rubber seal
Put the metal spacer in the rubber seal

Other side:
Bolted on the brake rotor
Held "hat" spacer while taking pictures, to show how much space is left over

Have you put the axle in with the axle spacers? There has to be ATLEAST one more space on that side on the last picture because if you did manage to bolt that up the bolts on the sproket would hit the frame. It all looks ok to me, without looking at it in person, Now fit the rear axle and its spacers acordingly, shove it all in the swingarm and then see where you at. I suspect your about there.

Is there a spacer that I'm not seeing on the diagram, then?  I see what you're saying about the sprocket bolts hitting the swingarm, but nothing shows on the diagram.  I kept all the spacers, I haven't lost anything.  I made very sure about that. 



OOOOOOH, crap.  I see.  Forgot the caliper bracket. 
Thanks for the help.  Crisis averted.  Nothing to see here.  Move along. 

hehe good job!, feel a sense of achievment now!?

That's not really what I'm feeling, no.  I got so excited to work on my bike today, that I didn't take my medication.  I'm bipolar, and without the medication I tend to overlook small (important) details.  That's why I only weigh 130 lbs.  I forget to eat until my wife gets home and reminds me. 

Thanks for your help.

While you're here, though:
Do you see any problem with the sprocket-side hub bearing not being fully seated?  I've already put on the rubber seal, and can't press it more without it screwing up the stupid thing.  Stupid little seal's a b1tch to get out. 
That same bearing doesn't turn quite as easily as I'm accustomed, either.  Is it something about that particular bearing style?  Being new and chock full of goodness and all.  Cause when I say "pressed", I meant whacked on the outer race with a big socket and a hammer.  The socket slipped off on one whack and kind of dented the plastic seal in one place.  I'm worried about it, maybe it screwed up one of the rollers or something. 
The inner hub spacer (#9 on the exploded view) isn't pressing against the inner wheel bearing enough to cause it to bind, so I know that isn't a problem. 
I'm thinking that maybe it just needs to be ran around the block a few times.  Opinions?

How deeply did you dent the shield (plastic thingy)

Normally, that is cause to remove and replace the bearing.

HOWEVER...

Bearings will be stiff when new.  Does the bearing bind, or simply feel stiff?  If it binds, remove and replace.  If it feels stiff, it's a judgement call.  I'd probably run with it, assuming it ran smooth, the dent was less than 1/32", and the shield was still sealed to the outer race.

Regardless, the bearings MUST be seated until the inner races contact the inner bearing tube simultaneously.  The bearing tube is designed to take the preload of the axle bolt, rather than impart it to the bearings.  In addition and most importantly, if the bearings don't fully seat when the axle bearing is torqued, they may seat at a later time.  The result would be a loss of torque on the axle bolt.

Tip:  You can tell when a bearing seats with a hammer by sound and feel.  When the bearing seats, the hammer will rebound much higher, unless you're using a sledge.  In addition, the hammer ring goes up in frequency.