If you are going trailTech. You might want to look into
getting a whole kit. Something like this.
http://www.trailtech.net/ktm_s-8311_kits.html
You get a stator already with the floating ground mod.
for DC output.
I did this mod on my '02 XC300 a couple of years ago.
As for the floppy rear fender. Do you have the sub-frame
loop support under the fender?
Keep us up to date on your progress.
Jeff