Could anyone upload some images of the cable routing at the hub/chainstay? On my Sturmey Archer 5 speed there's a plastic cover over the cable and cable arm thing (forget the correct terms) which juts out about 25 mm from the chainstay, which means that low-Q cranks can cause heel strike problems. It looks to me as though the Nexus is designed differently but I don't have any close-up pics.
I don't have a pic, but the cable runs on the inside of the chainstay, to a cable stop arm that protrudes about 3" along the inside of the chainstay toward the front of the bike, from the hub. One of the great things about the Shimano system is that it keeps the cable on the inside of the chainstay--no heelstrike issues. Although routing it the way Shimano does causes wheel changes to be a bit more invlolved, until owner learns tricks and techniques with the hub shifter cable to make removal and reassembly easier.
Sounds good. What's the axle diameter? Is it the usual 10mm?
I guess so? Fit the standard track end of my IRO Rob Roy, no problem. They take these locating, anti-turn washers as well, and the whole setup fit just fine in standard dropouts. If your folder doesn't have a traditional chainstay, you might want to experiment with different sets of washers to figure out which ones might work best with your cable routing.
I've got a 2007 Dahon Vitesse. Just been looking at the over locknut dimensions and the Nexus is 130mm whilst the Sturmey Archer is something like 113mm. Dahon must have changed the frame for the 2008 model.