are you going to riding /racing it? put smaller caliper on it somthing like a road bike calliper with shorter arms .. you'll be able to sit the axle centre in the dropout then , shorter/ smaller caliper will work better too , mx 1000 type realy on work well down to 1.5 rim, other option is newer blocks with the toe in spacers on but i looks like you might stuggle getting em to alighn up on the rim with that caliper