I'm using a trolling motor. It tilts flat when not in use. As long as I maintain some tension on the main sheet during gybes, the sheet does not tangle in it. For a regular outboard, a motor mount may help position things so that the traveler (triangle) is not trying to go where the motor is when it's out of the water (not used).
This picture shows the apex of the traveler when going upwind
The height of the traveler, and therefore the smallest distance between the two blocks in this picture is given by the length of the line making up the traveler. My photo was taken while I was experimenting with the best setup. I've since replaced the traveler with a somewhat thinner line.
I based it off of this setup on another boat (shown with the boom in a position as if on a reach):
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The difference is that I didn't bother with the setup for fine tuning adjustment (in the middle of the transom). Instead, I have a simple knot there that goes around a hook under the coaming (under, so I wouldn't have to mount anything visible).
Shows how the trolling motor fits under the traveler when not in use. Where the traveler has the two "tails" there's a knot that's hooked around a hook behind the coaming. This centers the traveler. As we are going downwind in this shot, it should have been released (unhooked), so the block could go out from the center position more to starboard.
Hope this helps.