Totally supported on the swingarm. The engine isn't all that heavy, but it still more than doubled the unsprung weight I'm sure. My theory was that I was building a bike with a motor, not a limo, so I would deal with it.
The bushing problem was most apparent when starting from a dead stop and turning while the throttle was open. I could feel a flexing that got worse until I replaced the plastic bushings. I still can't complain about the bike though, the frame is indestructable, and the bushings hung in there pretty well for what they were subjected to.