If you look at the rod that is connected to the pedal, you will see a lock nut and treaded shaft at the other end. This is your adjustment for the lever. You should be able to turn it in to pull the petal down and away from the pipe.

 

In the past there where some rear brake fires caused by that same problem, make sure it releases before you ride

 

thanks guys. ill give it a shot in the am

 

Just tap a small dent in the pipe where the pedal hits. Adjusting it probably won't help. I did it with my Bubs, solved the problem and can't even see the dent.

 

Put a couple of washers in between the forward control and the frame to push it out and away from the pipe.

 

flyboy, i dont see why it wouldn't help. I had 2 come through my shop and adjusted them both this way with no problems. You just have to be persistant with it, but it does work.

 

i adjusted the nut and it pulled the brake lever away from the exhaust. koul

 

PDD00,
This is very dangerous and important!
Make sure you fix this before you ride, like Monstrddg said. Also there needs to be clearance after the exhaust pipes get hot, they grow a little when hot.
What can happen is this:
The bike seems fine when you start out, but then the exhaust gets hot and the pipes expand.
The pipe pushes on the brake lever and actuates the rear brake.
The rear brake gets hotter and hotter until it bursts into flames.
You go running around looking for a way to put out the fire on your beautifull new bike.