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Thanks guys. I moved the steering arm to the hole closer to the knuckle as Blake suggested. That did the trick. Still not 'awesome like a Volvo' turning radius but acceptable. As kind of a bonus, it moved the arm away from the sway bar mount enough that I don't think it will hit it.
IMHO you need to address the clearance issue. If not, you will end up breaking your high steer arm/knuckle/tie rod/etc one day on the trail.
Until you fix this issue, I recommend you either don't 'wheel, or you get all new steering parts, mock 'em up and carry 'em as a spare (I do this anyway...)