Hybrid Bicycles - Bike Issues

i have GT Traffic 4 (2010 model)

i bought and fitted a cheap rear rack for my hybrid unfortunately the front two spokes that attach to the back triangle are a bit short so the rack is not horizontal its slopes forward, is there some type of extender i could buy and use or would i have to go else where to buy a different rack?

The cheap plasticated mud guards i fitted dont fit properly either i just got them to cover me in the wet weather; when pumping tires to max 65 psi the guards stop the wheels moving so i had to let the tyres down in order to use the bike. i have 700 x 40c schwalbe roadcruiser wheels

Yes did try two large bike shops for both things they said it be a bit difficult and the rack would require a bit of extra work i went to another shop to fit it as it was closer and wouldn't take as long they put on the guards as well they didn't have any metal ones for my size tyre, which is what i wanted. i have heard about sks but i dont know where i could buy them from, i live in Derby.

i have attached pics of my bike

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You need longer rack stays to level the rack, and I don't know if that's something that a bike shop would stock. Something like this (http://www.universalcycles.com/shopping/product_details.php?id=23931&category=3537) would work, you'd just have to unbend the 90º twist.

As for the fender, where is it rubbing? Under the brake, or at the front of the wheel?

Or as a different option, slide the seat tube fender clamp higher up on the seat tube. I had a similar fender, and couldn't get it to work for crap til I slid it up higher. Then the rear drops closer to the tire. Then you can lower the rear of the rack, because it looks like it is up so high exclusively to clear the fender.

The fenders I had had a snap clamp for where it bolts to the cross piece on the seat stays, so you could slide that forward and back. Yours may not work that way, so you may not be able to slide the seat post clamp higher.

Shouldn't that bottom bar be flipped? the piece attached to the frame by the axle. Or can the rack be lower on that same piece?

The part that holds onto the seat tube does not move. I really cant do anything. I'll certainly look for some rack stays in uk now that I know what the proper name for it is. As for fenders I hear SKS are good?

Push up the fender in the place it is attached to the seat post. That should solve the fender problem. If it can't be moved, tough luck - improvise, or get another one. Full metal fenders in my country are some 5 euros - not more.

Rear rack: judging by the picture, I'm 99% sure that you can just bolt it one hole lower. It looks like there is enough space for that. That way it will be level.
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From that last pic, it looks like the rack will fit if you get closer fitting mudguards. These fishtail type mudguards don't go with racks very well.

They are just cheap fenders as I said I will look for sks ones