Right, so I did some work this weekend. The forks as I have mentioned were not working at all, so I decided to take them apart and see what the problem was. I took Mechticians instructions, as well as some I found on the net, and got working. I first undid the bolts on the top of the forks to see what it looked like inside. I unfortunately didn't take a photo of that, but all you could really see were the fork springs, as well as the oil. Suprisingly, there was enough oil and the springs looked like they were in good shape. No rust at all.
As I was taking the bolts off (pic 1), I could hear air escaping from the inside of the forks. I thought this a little weird, but didn't really pay much attention. I then decided to put the bolts back on and take the forks out of their frame. When I had them out, and pushed down on them, they now worked!!!!! I think the problem was that there was an air build-up inside, and the presure was too much for them to compress. So I didn't have to take them apart at all!!! Yeah. Problem 1 sorted out.
I was going to go with Bigheads idea of keeping the frame 'as is', and just cutting the down tube and bending it for more engine room. I then realised that my jackshaft would still not fit, and there would be too much frame in the way for my chain to reach the rear wheel anyway. I would also need to get a shock for the rear (which I know would be a headache trying to find cheap). I would also try have to line the PTO and swingarm up etc etc.
I therefor decided to go the route of more cutting and welding, but easier on my non existant mechanical skills and knowledge. I therefor bit the bullet and did some cutting. The third pic is where I cut the top part of the frame, and the fourth is the whole frame cut. I tried to retain as much of the original frame parts so that i could use them later (like the seat bracket and the footpegs). The swingarm is also still intact if I ever need it. When I cut through the motor mount frame, I got this foul smelling water pouring out. It must have somehow gotten in there from standing outside all this time.
The last pic sort of shows what I am going to do. I will use the square tubing I have to extend the motor mount area as well as the top of the frame. I will then fab something for the rear wheel to connect to.
As you can see, the engine now fits in there nicely.
Let me know if anyone has ideas that might help me