Installing (200amp rated) Automatic Transfer Switch...height requirements?? Plz Help

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I am installing a 200 amp automatic transfer switch in a customers home, (along with a 17k Generator)... Unfortunitly, I only have a limited work space (utility closet) 36"w x 86"h x 7"d. I want to leave the existing 200 amp panel where it's presently located, and mount the new transfer switch below the panel because I have no space on either side. With 6 inches between the bottom of the panel and top of transfer switch, the clearence from the floor to bottom of transfer switch is 12 inches. Is this okay? Not sure if this makes a difference, but this is also a finishes basement. Any help would be greatly appreciated. Thank You in advance.
 
First, Thanks for your help. I'm new to the forum, and I find it extremeely helpful.
Secondly, Yes, the depth of the work space is 7 inches, with a door that opens to gain access.

I have another problem that I just stumbled upon during research. :(

A 2" PVC conduit has already been installed 18" underground with brand new patio block on top of that, and the distance between the Generator and the Transfer switch is 110 feet. The addition of another PVC pipe is almost out of the question......

What will the cause/affect be, if I put the Power leads and Transfer switch leads in the same 2" pipe??
 
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