I have an update. The offset on the rims is correct (I think) From the back of the bolt holes (where the rim touches the rotor) to the back edge of the rim is exactly 4".

I think I have found the problem but I am not sure how to proceed to fit it. It appears that the fenders are "loose" near the bottom. I mean I can push them in about 1.5" then they bump up against the frame. It's almost like a bracket that secures the bottom of the quarter panel is missing. Am I making any sence ????