I thought I might post this in here as enough of the members have done this particular swap in the past, and will have informed opinions.
I've read through the other posts on this particular subject and few of them mention what I found... so I thought I'd check.
Firstly, the NC29 wheel with spacers is a few mm's wider than the NC23's and I also have an issue with the bolt hole of the chainguard being in the way of the nuts holding the NC29's sprocket in place. I don't have the rear brake hanger on this swinging arm because it's not on a bike and secondly the 29's wheel wouldn't arrive to let me take these sort of measurements anyway.
Anyway, I thought this would come in handy as a visual reference for anyone attempting this conversion.

First the NC23 setup and measurements.


NC29 initially with the wheel able to turn (clearing the swinging arm)
it's 3-5 mm narrower which is a lot when dealing with steel... as it doesn't bend.

And playing with getting the left spacer flush with the swinging arm's inner surface.


Chain alignment and clearance comparison (seems ok once the chain guard mount is shaved flat - but would also benefit from the sprocket carriers bolts being a couple of mm shorter to avoid any interference.


Thinking around the problem I briefly entertained swapping the sprocket carrier over as the cushes fit... but that is all.


Any suggestions as to how to best go about solving this issue very welcome.