[Bill Bess]

Maybe I don't understand the problem here but, " going back to basics" is the place where I would start.
. Make sure nothing is rubbing that would prevent the clutch arm from moving freely.
. Bleed the system of any air, looks like it should be easy due to the short amount of
line between the master cylinder and the slave cylinder.
. Push the rod in the slave cylinder back into the slave cylinder with the bleed valve
open so the piston retracts into the back of the slave cylinder.
. Close the bleed valve. Now the piston will have the maximum amount of travel when
the brake is operated.
. Adjust the push rod so the clutch arm pushes the throwout to contact the clutch forks,
leave a slight amount of clearance..not much.
. Now check to see if the clutch operates properly.

This method has always worked well for me, good luck.
Bill