Ok, that's the same engine I am using. I am not using the stock collet, I gave it to my bro.

I figure that would be it, because the flywheel is too far from the engine case and that would be why it's interfering with the brakes and not aligning. I thought It would do with the flywheel a little far away, guess it didn't work, lol.
Just to confirm; you did toss away the drive hub that came with your .18?
Tks much!
Bruno