Ok, the swingarm spacers do sound like a good place to start. I suppose I should try Dr Rob Tuluie's "chassis alignment" and see if the swingarm is misaligned as well. If so, changing the spacers could fix both... Here's the link to his page:
http://www.motorcycle.com/mo/mcnuts/chassis.html
No, I don't see anything obviously bent on the swingarm, but this bike was reassembled with 907 bodywork and tank, so something must have led to that (like a big crash?).
As far as that bolt, lets see: PB Blaster, torch, bees wax, torch, butterfly impact, a real impact, a 2' long breaker bar, and then SNAP! (repeat this method 3 times, now have 3 broken 7mm impact sockets-oh wait, the service manual says to repeat this method 4 times!)