I took the wheel off again and used a sticky note pad as a feeler guage to help get a better measurement. It's actually closer to 1/8". I also noticed the calipers appear to be 4 piston and that the caliper itself is fixed. So if that's the case, the caliper shouldn't move outward if I install fresh pads. The area where the clearance is the tightest is right at the top and only at a small spot not near the pistons. So as you said, grinding would be an option. I'd rather grind a little than use a spacer. Plus the studs would probably need replaced with longer ones if I had to use a spacer. They seemed short to me. I'm going to place the order for the other 3 rims. Once tires are mounted I'll drive is slowly to a local parking lot and do some cornering to see if the wheel flexs enough to contact the caliper. Anybody know a place that has chrome lug nuts for steel wheels?