Blaine,
While it's usually preferable to have the inverter close to the batteries, if you would rather keep it in the original location and compensate with heavier cable there's nothing wrong with doing that - just the expense of the cable.
According the installation manual for your unit on the Xantrex website, even 2 gauge should be good up to 30 feet. I think that's really pushing it though and your idea of using 1 gauge would give you a nice margin.
You might run your question by the Xantrex tech support, but I see nothing wrong with what you're proposing.
I'm not an engineer or licensed electrian - just speaking from experience of what has worked for me and what your installation manual says.
__________________
Tom
'04 Journey 36G - Cat C7
'04 Honda CR-V
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