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Great thread! I sure wish Walmart had these a couple years ago when I was traveling extensively! I would have bought one of these every couple of months and then just sold them as opposed to flying with them especially since a 3rd bag runs about $125 on most airlines...which is a crime, but we won't get into that here.

It appears that the main item preventing you from mounting the adapter in the right location is the reinforcement bar that goes between the seat tube and the seat stays. Is that right? Have you compared where the reinforcements are welded on an actual Dahon Mu Frame?

Looking at pictures of Dahon MU frames, the Genesis does not look different enough to prevent you from being able to mount an FD, but as usual, I could be way off on this. I think you've seen these pics but check out these from Thor's site:

Overview

Right

Left

As TheGlutton pointed out in post #97 , my next suggestion would be to get a LitePro FD adapter made specifically for the MU frame, like This One. You've obviously seen this since you found the adapter you bought on Ebay as well. However, this one is specifically designed for the MU frame and I don't think the adapter that you have is. The "correct" adapter appears to have a cut out to accommodate for the reinforcement bar which might enable you to mount it lower on the seat tube. If you do go this route, I wouldn't worry one bit about the fact that it's hinged. These are really well made and the amount of force needed to adequately clamp the adapter to the frame isn't anywhere near enough to do any harm to the hinge.

If there is no way to get an adapter to fit, my next suggestion may sound a bit absurd, but here goes. Since you paid so little for the bike and it really is primarily about function, what about having a frame builder braze/weld an FD hanger on the seat tube? I'm not sure how much paint would have to be stripped but if it wasn't too much, you could probably touch it up without it looking too bad. OK I said it...flame away!

Anyway, I hope this has been helpful. I've really enjoyed following your progress.