Your caliper should sit approximately 1 inch above the swingarm when mounted properly. Seems your rear caliper support is on backwards.

 

When I compare pics before tear down to what I have now it appears the same, except the caliper is touching the swing arm and before it was like Ace says, close to an inch above.
Here are some before shots (best I have but i can zoom in a bit):



You can see on this photo on swing arm is the circle thing that has two flats spots on it that sit in the groove on caliper bracket.


Anyways, Im going out to work on it in a few mins. Ill post what I find!

Thank you for all the help so far!!

 

Well I found the problem...

Smart me I made a mark on the swing arm and the caliper bracket and they were off by about 1/2''....the bracket can only go on one way, if it goes on the other way the caliper/brake would be mounted under the swing arm!!

The carrier houseing is not centered (obviously) so as to let you adjust chain etc...You can see where Im going with this. I had to knock carrier outa swing arm and rotate 180* then reinstall.....got all buttoned up but wouldnt rotate when I tried to adjust chain
I took a pipewrench and turned the carrier that way to adjust.

If nothing else hopefully if someone else runs into this problem there will be some info on it for them to help get straightened out.

Thanks for help everyone!