I'm having some problems with the chain going slack. Not sure why or how to fix it.
I liked the motor setting lower but the chain to crank angle made the chain rub the clutch housing.
Any suggestions would be appreciated
You have 2 choices I guess, Good quality chain like Tsubaki, or a tensioner or probably both. Nice start.
As you shim the motor away from the jackshaft you can lower it closer to the crank.
As the motor moves forward in the frame, the chain will clear the housing and the motor can drop.
A tensioner on the slack side (front) would help as well.
Totally theoretical, never built a shifter, but I do industrial chain drives all the time.