I turned my rear hub from the outside to the inboard side. It doesn't take much and the cast iron/steel cut like butter. You can easily do the chamfer with a file and trust me, it only take a few seconds so be careful.
As far as alignment goes, the front sprocket being thinner from the outside in also, from what i can tell, will make things inline. That being said, a 1/16" over that length would be rather insignificant.
Here is some more info. The new oring chains are stuff due to the white lube that is everywhere on the new chain. I was really surprised how much power was lost due to the stiffness/stickiness. I scrubbed it up in spirits, then lubed it up with the proper wax. This loosened it up considerable. Some say this is not so with them but maybe theirs were shipped with different lube.
After a time, I realized that other than the pretty gold color, I gained little to no benefit and I knew that the weakest point in this final drive link, so to speak, is the rear hub wear and the thinner it is, the quicker it wears. I reverted to the oem setup and feel more comfortable with the system as a whole. I might put 2000 miles on it in a season.
Finally, I truly feel that I lost up to 5+ horses at the rear wheel from the oring chain and the change was significantly noticeable. So, being there and back again, I really like the standard duty free wheeling chain.
The o-ring setup just isn't worth it, but looks good on the trailer.