First of all, THANKS for all the help guys! Just brings testiment to how I brag to others of the level of cooperation this forum has for each other.
OK, just pulled rear wheel off and the center bore of the rim is indeed 74mm. here's a pic of the 5mm wide spacer they put on thats just floating in place by the lugnuts. I can see the problem now.
here's how it looks inside the rim