I thought about using the lugs that mount to the cantilever bosses, but I had the braze-ons available and this seemed cleaner.
To clear the big tires and the fenders, I used the last hole. The fender very nicely fits into the next hole above; no adjustments required.
My rack didn't come with extra bits of aluminum stock to mount to the braze-ons. If you're planning to do this, make sure you get the 6" aluminum rods to do it.
Finally, my Wald basket has a home (note: I've since rotated the basket 90 degrees to get it in closer to the handlebars.)