Originally Posted by basketcase
Thanks, and I follow what you are saying.
So I'm going to need to pull the lever off and grind a bit from the bottom to get the clearance I need
2. How much metal to remove from the bottom of the
lever threaded rod
Edit: I missed Sagedrifter's point about grinding 3/16" off the brake lever with PC lowered pegs, so this may be a different issue:
1/4" to 5/16", far enough to get your pedal below the peg. You don't have to remove the pedal or brake cylinder. Pull the clevis pin (cotter pin hiding on the back side), loosen the 10mm nut on the rod, remove the clevis and grind the rod while still hanging from the brake cylinder: Warning, this is a good place to hurt yourself.
I didn't know how to remove the rod from the brake cylinder and I had to grind, fit, grind, fit etc. so I needed the rod in place anyway.
Another point to check: after readjusting, my pedal hit on the front of the lowering bracket (template graciously provided by NordieBoy), stopping downward motion (no brake); so I removed a bit from it and the pedal to allow clearance.