I have copy and pasted these instructions on how to properly adjust the clutch from another posting I made on this subject in the past.
For the sake of argument, I'm listing the correct clutch adjustment proceedure here for you to check it out.
First, make sure (that when you do this alignment of the clutch actuating arm is in the position in pic below), that the clutch lever is in the fully released position so that the clutch pads and pressure plates will then be in the fully ENGAGED postion.
It should look exactly like mine in this picture below with the CLUTCH LEVER in the FULLY RELEASED POSITION.
AFTER, you do this correctly, THEN follow the instructions below this pic to adjust the flower nut, The flower nut adjustment is the adjustment that adjusts the clutch plate distance from the clutch pads and located under the cover on the right hand side of the motor...lol.
When adjusting the flower nut on the clutch, make sure that you now have the clutch lever pulled in and locked in place, the clutch pads and pressure plates will now be in the DISENGAGED position.
Remove the flowernut set screw and then tighten the flowernut until you can't turn the back wheel at all, from there, turn the flowernut counter clockwise a "notch" at a time until you get the wheel to turn freely by hand and stop right there and put the lock screw back in place at that notch where the wheel turns freely...If you forget to put the set screw back, your clutch will back off and start slipping
When you release the lever it should of course now have the clutch totally locked up in the totally ENGAGED position and at this point you should have all the slippage totally out of it.
This is a pic showing you where the flower nut is located, right in the middle of the large gear that holds the clutch pads as well as the pressure plate together...Be sure that plate is installed the way it is shown in the pic...I have seen people actually put this on backwards before...lol.
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