Hey am33r,
I am using 1.5" spacers in the front (though I also have 2" from the OEM wheels I had). I flattened out the lip behind the tire, and then had to beat it back a little bit, but got full range steering. I think if I hit a bump it might rub, but I can hit it back a bit still if I need. I didn't want to cut it out personally. I think your fix is great and looks well done, I just prefer not to cut out metal if I don't have to. I'm also used to only having 90% wheel turn because my truck has huge mud tires on it and rubs if I go 100%, so for me it's not a prob being already used to it. My rims are 19"x9.5 with 235 35 tires. Pretty low profile.
I got very very similar seats that are black on black for $135 with shipping off ebay. I had to make the bracket for them myself to get them in the car, but it took just an hour to do.
Keep up the great work am33r. I'm really glad you were doing this at the same time as you've given me great ideas for the windshield motor, and I moved the fuse box.