I moved the file cabinets to the desired location to try it out. I think it will work, even my "husky size" figure can open the drawers completely and still bend down without knocking something over. It is great because it worked out to be 3 ½" out from the wall, so a few scrap pieces of 2x4 will fill in the area about perfect. I may try and get the countertop cut, but it is not a huge priority.
I am totally in love with my catalog racks, I wish I had bought them years ago. I am bidding on some more right now. They make handling everything so much cleaner and I can use them in multiple locations. I have more out in the stockroom with some of my automotive service manuals. Overall I am happy with the progress and I got to use both my of the punches, that makes my $350 investment in them worth it! I figure after these next two weeks, they will easily have paid for themselves. I have not tested the two hole punch as much as the three hole one, but they are essentially the same thing, so I am not too worried. Here is a catalog I punched and a small overview of how the catalog racks work.
The metal frame snaps together around the catalog, it is about as easy as a three ring binder. Removal is a little harder, but no big deal. The frame has tabs that just slip into slots on the rack. It is easy to move them around and it keeps things much neater.
The catalog opens very well, I did find a few that were printed really close to the binding and they were a little harder to see, but I think it would have been difficult no matter what.