I worked a similar hole in the hugger on my 748.
Are you running the standard gearing? If so, you could kill two birds with one stone by fitting a larger rear sprocket and longer chain, which will improve the over-geared stock set-up. (You might then want to reset the ride height).
If you don't act now, it'll soon wear a hole.
This subject has cropped up before, and if you do a search, I expect you'll find some wise words.
If changing the chain's not an option, you'll have to look at spacing the hugger off the swinging arm somehow.
[Edited on 24-6-2004 by moto748]