OK, I worked on this some more during lunch --
Get some 5/16" washers and use those instead of the spacers from Woodcraft. Use the stock bolts to mount the rearsets. You'll notice that the MC clears the swingarm just barely (I'm going to hoist up my bike to check clearance in the full swingarm motion range), but it looks like the pivot bolt for the brake lever will hit one of the bolts on the exhaust pipe cover.
The solution for this is to get a replacement bolt for the pivot bolt from your local hardware store. The stock one uses a lock washer that you can ditch and just loc-tite on a slightly shorter one. Torque a reasonable amount (maybe 7 ft./lbs.?) Because you're ditching the lock washer, it doesn't stick out as far. I don't know the size of the stock one, so just take it to OSH and find a similar one.
I think this works pretty good. I checked this vs. the stock rearsets, and the stock rearsets are actually thicker than the Woodcraft ones, so there's about the same amount of bolt threading into the frame when you use the WC ones with a 1mm washer. So it should be just as sturdy.
If you're really anal, put on the same washers on your left side rearsets too to make them match perfectly evenly.
Hope this helped out other people.
I took an Advil and listened to some Debbie Gibson, and I'm feeling much better now!
Ray