Q about installing 1 1/8 front sway bar

OK guys, I went to finish up my suspension package(grab-a-trak) and the sway bar was the last piece which I thought would be easy enough. But once I got it up in place, I realized there is no way it will fit without grinding a big notch out of the frame where it is hitting. Is this normal? There are already notches cut in place for the stocker to fit, which I would have to enlarge by about an inch or two, but I don't remember reading anything about the kit saying frame modification would be necessary.

Also one other issue, I've got tire rubbing on only one side of the front(pass side, on left turns) DS clears by 1/4"-1/2", could this be because the alignment is way out of whack?It rubs on the front bottom of the fender well. one side in the rear also sits about a fingers width higher than the other. here's the specs of what I just did:

Grab-a trak suspension with 620 coils, Neg wedge kit, and 17" tt2's and 235/45/17 yokohama tires.
Getting it aligned wednesday, and I can't wait, the car handled so bad before I didn't feel safe in it @freeway speeds.

All responses appreciated.

sorry about that, it's a 64 1/2. Also edited my post to clarify, after re-reading it wasn't completely clear. I wanted to take pics that I could post but my digital camera is missing at the moment. But the frame is notched to clear the stock sway bar, so with the wider diameter of the new one it is wedged right up against the frame when the front two mounts are even loosely bolted up.