[Loosenut]

Cutting the seat foam may be a problem. The fuel cell forces the seat to be very thin forward of the top sub-frame mount. I would go with Widebear's suggestion. Lower the suspension. I have ridden seveal lowered bikes that impress me with how well the suspension works even when 2 inches of travel is taken away. The only disadvantage I see is ground clearance, which is why my bikes are stock height.

Good luck in your set up!