Considering this is how VO suggest setting up their cantis I'm not surprised they don't work.
My thoughts exactly, however I don't see how you can set these up any other way..
I think they're meant to be set up like that. They're like the Paul touring cant rather than the neb-retro canti. It gives better clearance for panniers etc but I guess you pay for that with less braking power.
@M_V started
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Considering this is how VO suggest setting up their cantis I'm not surprised they don't work.