Hi Macbeth, thanks for your input.
The rear wheel I took of my bike is dished by about 8mm and the right spokes aren't quite vertical. I wans't sure how close to vertical you could go. So based on that, given there is about 27mm gap on the motor hub, the max offset from dishing would be half that (~13.5mm) with the right spokes vertical.
I have ordered a 3 gear cluster to see how that goes...