Further investigation reveals the following.

Very little room between the bar tape and the stem where it attaches to the bars. The Handlebar Bag mount just gits in the gap that there is. The brake cables come out of the bar tap and as they curve downwards, seem to come in contact with the Bag mount.

Heres a link to a picture: http://s243.beta.photobucket.com/use...8fc1b.jpg.html