I'm not going to run fenders, but I agree that moving the front suspensin too much forward is not good.

Im must also check out if the front mounted steering rack will interference with the radiator if I move the front suspension forward.
But on the other hand, since I've not bought the radiator yet, I can buy a 2" chopped radiator and move the mounts a little upwards, of course.

At present It sound to me that making an extra recess area in the middle of the fire wall will be the easiest way to go. And moving the engine more back will be good for the weight ratio too.
But I will do a mock up when I've completed the lead filling work and the engine is mounted together with the transmission.

By the way, here's my homepage who describes the project. It's in Norwegian, but there are lot of pictures who speak for themselves:
http://home.online.no/~staalgi/index.cfm