You can just bend it. I just did the same exact job, moving the engine out to remove the side cover. The chrome tab just bends right out of the way. When you bend it back into place when putting the cover back on it doesn't go back perfectly straight, but it's not noticeable, and it's WAY better then removing that whole oil line. You also do NOT have to remove the carbs.
Yes, you have to pull the engine to replace the stator, but you only have to move it two inches past the frame so you can slide the side cover off the shift tab. I never worked on a motorcycle before, and I just completed this job (well almost anyway). Feel free to PM me for any help. Follow the Stator replacement notes, they're great...
1994 Vulcan 750 40K on the clock and counting....
Bought 4/2011 28k Miles,
New Rick's Motorsports R/R
Tim Parrot Stator
KAW Saddlebag/signal relocation brackets
NGK Iridium Plugs