Thanks for the response, ItchyZipper. I realize the benefits of a standard rack/pannier combo vs a Wald basket. My hope was that the Wald basket would be a little more economical and would be able to carry more, especially large items (can lay them across the top). I guess my real question, out of that huge first post, was whether or not there is anything distinctly wrong with the way I have them set up now? Is the fact that they are not level a huge issue (is the weight going to shift to the upper mounts as opposed to the dropout eyelets)? As you can see in the third picture, the basket is currently mounted to the dropout eyelets via bolts. It just so happens the other hole lines up with the axle perfectly and, since I don't really have the tools to cut the steel supports, I figured a slightly longer skewer would be a solution -- will this work; is there a distinct problem with doing this (I'm willing to accept the fact that it makes fixing flats slightly more difficult)?

Thanks again!