I think as long as the tip doesn't touch bumper or lip, you are fine.

And as long as the can doens't hit the gas tank, you are also good to go.

I had to bend my hangers down when I had the 5Zigen, but with the WS, I bent it back up... it hit the tank a little, but after a few weeks it sagged a little I guess and it's fine.

The smell is normal and should go away, as with any new exhaust, there's some kind of anti-rust coating inside to preserve the muffler when it's stocked in warehouses... also, the exhaust will get quieter as well in time.