Yep, that's the first thing the bike guys tried to do on my shoes (the washers and longer screws thing) - didn't work for the very reasons you mentioned. Thus, getting them to think creatively and move onto the crankbrothers attachment.
Normally, I would have gone to my LBS - but I didn't realize the problem until later in the night...and the LBS stores were closed. Everything happens for a reason, I guess - because the solution the REI guys set me up with has worked like a charm.
I was finally able to clip in. I loosened the pedals up a bunch, lubed them with a dry spray lube and physically (with my hands) clipped the shoes in and out of the pedals over and over. The tread is touching the pedal (barely), but loosening up the pedals a bunch helped. I guess they were just stiff and then the tread was getting in the way just a bit - not helping the situation. I had the Dremel out and ready to go, but I don't think I will need to trim. We'll see! Thanks for all of the suggestions!
That's great news! I hope it keeps working for you. Good luck!
"There is nothing more frightening than ignorance in action." -X