I spoke with Mike at Traxxion today and he was a pleasure to work with. He carefully read my post and met with Dan and their in-house technition and came up with some options that I think will work. The most impressive option that demonstrated Traxxion's integrity and customer service, which I do not want to do, was to offer me a full refund and I return the shocks.
He suggested I mount the shocks with the reservoir forward and down and shim the front connector of the saddlebag. Traxxion says the reservoirs tend to move in toward the wheel when the shock is compressed in this position, and with the reservoirs in the rear of the shock, they tend to move away from the wheel toward the saddlebag when the shock is compressed.
I bought 1 inch long bolts (3/4 inch is stock) and shimmed the front saddlebag connectors a full 1/4 inch. The bags seemed to fit well and no problems with the look. After shimming, on the right saddlebag, as best as I can judge, I have about 3/8 inch space between the reservoir and the flat portion of the saddlebag (not the indent portion), which all looks good. For some reason, on the left saddlebag, even with the 1/4 inch shim, I only have about 3/16 inch clearance, but since it is on the flat portion of the saddlebag, I think I'll be fine especially if the reservoirs tend to move toward the wheel.
I will have to do one more mod though to make it work. I'm going to have to move the wire for the automatic latch connectors. The left saddlebag will shear the wire if the shock fully compresses. This shouldn't be a big problem though. I just need to move it away from the line of the stroke of the reservoir and put a small rubber plug in the old hole and I should be good to go.
One other issue I brought up with Mike that installers of these Bitubos might want to seriously consider: The upper and lower bolts to mount the shocks are both 2 inch and you reuse the HD bolts. However, with the 1/2 inch spacer that is installed on the bottom of the bike frame, you only get 1/2 inch of thread in the bike frame for the lower mount. I went and bought 2 1/2 inch grade 8 bolts to replace the bottom bolts for both shocks so I get a full inch of bolt thread to hold the shocks in place when torqued to 40 ft. lbs. While I was at it, I also replaced the upper bolts with 2 inch grade 8 bolts.
After I move the latch wires I'll give the bike a thorough test of the shocks and hopefully confirm no new wear or contact between the reservoirs and the saddlebags.
Randall