You need to adjust the sag and then worry about whether you have enough clearance - or reset it to stock!
If you have 3.5" of travel and the fender constantly twats the bottom of the nose, then you have a problem!

I ran my '21 with 13mm of fork above the top yoke. It was really sharp on the steering but would scrub a front tyre really quickly. the preload was wound in (can't remember exactly) with about 2 rings showing. I couldn't tell you what the distance between the fork and the bottom clamp was, but there was no contact under heavy braking/full suspension travel.
Again, I think you should set up the sag first, and then worry about the ride height. No reason why you can't set it up as stock, measure it, then drop the front (say 10mm) and re-measure it/re-set the preload, then drop it a bit further and re-check it until you are happy.
Just setting it up by measuring the distance between the fork tops and the bottom yoke and asking if it's OK, is like asking if your crank is OK just by looking at a photo of it!!

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Andy.
NSR-WORLD.COM
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