Vertical upright, swing-arm and generator install 5 of 7.
If you didn't already do so, please fill your rear tire before you position the generator spindle 90 degrees to the tire in both the vertical and horizontal plains. :
I would fill the back and front tire to the maximum pressure written on the sidewalls.
If you don't plan on using your generator as a bike, you could probably fill the rear tire to 5 PSI over the maximum and get a slight bit less friction when generating electricity. Since you won't be putting the approximately half of your weight on the rear tire, no more stress should be exerted on the tire with 5 more PSI over maximum than if you were to take a ride at maximum pressure.
3) Cut the swing-arm out of a nice straight, clean (no knots) piece of 2 x 6. Cut it 1/2" longer than the vertical uprights when the motor housing is 1/4" away from hitting the tire. Try not going much more that 1/4" or it will put more stress on the bronze motor bushing.
You could also cut the swing-arm 6" over-sized, and once all is aligned and in order take it off and trim it to size at that time.