buffalowings

Hey guys, I bought a Diamondback RCX at a bargain price I could not refuse. It is equipped with stock Tektro CR710 brakes, 32c kenda small block 8's. One issue I have is that I can't remove the rear wheel without deflating the tire, because the seatstays prevent the brakes from opening all the way. I'm planning on racing cyclocross with the bike when the season comes around (eventually) I guess I have several questions: Was someone sleeping when welding the tubes together? Is this a defect/flaw inherent in the design? Was this influenced by the size of the frame (50cm/small)? Any brakes that could let me work around this seatstay clearance issue?

Thanks,

James