OK update! The front brake clearance was just a matter of realigning the pivot. Basically it was rubbing on one side of the arch. So by centering the pivot, it clears it nicely.
However the rear brake is a different matter all together. The arch is rubbing. It seems that it kinda list downward abit when the brake is screwed onto the upper seat-stay hole. I have not modified anything... something I want to avoid. I guess worse comes to worse, I will have to put 23c for the rear wheel.
The reason I want to go wider was 1) comfort 2) I am using this roadbike for commuting which will see a bit off unpaved crush gravel paths.