Sorry to say, but your trem angle cannot be correct to be hitting the switch tip. I have the same guitar. Your trem angle should be just like I have it in the picture below.I have a UV777PBK that I've had from new and it does the very same thing! The trem angle is perfect on mine bit it still catches the switch tip in the middle position.
Sorry mate but the angle on mine is set perfect. I'll get some pics together this weekend off the trem and post them as Ive been wanting to photo a LNG that Ive put together, but that will be a differant thread.Sorry to say, but your trem angle cannot be correct to be hitting the switch tip. I have the same guitar. Your trem angle should be just like I have it in the picture below.
On the side of the trem you'll see the side of the knife edge- where it slides into the trem body........... It must be parallel with the body. DO NOT MAKE THE TOP OR BOTTOM OF THE TREM BODY PARALLEL........only the knife itself.
Any chance the arm itself has been bent by a previous owner? They are usually a few inches off the body, some find that too much. If it is bent, you might not want to bend it back, since it can snap.
Both VERY good suggestions!!!Perhaps the arm is not the proper arm for that model?