Here's some 'inside skinny' on the CB500 clutch system, which led to the CB550 changes:
The clutch rod is steel: the engine cases are aluminum. The cases expand at nearly 3x as much distance-per-heat than the shaft, partly because the shaft is also suspended by its ends and never gets as hot as the tranny. In the earlier bikes (like the CB160, et al, where this design came from), they all suffered this same scenario. So, we all learned this particular way to adjust the clutch, which is:
when cold (like in the AM, first thing), the clutch is adjusted at the cases, with the handlebar adjuster all the way in, to just take up all the cable slack. The lever should just feel like it is coming up against the lifter about 1/8" from the full release. Then, when the engine heats up fully, the lever will have the 1/2" of "play" as shown in the manuals. True, the shift point will move as the engine heats up, but we oldsters used this point to know when the engine had reached full operating temperature, because it had 1/2" of free-play at the clutch lever. Further: when this play INCREASED with a hot engine, it indicated the oil was running too thin: depending on the oil mileage or the temp of the day, this could indicate need to change oil.
On my own CB500-4 (K1 model), I used this indicator to tell me when to change oil, in particular. It hit almost exactly at 1100 miles, every time. In the 1971-72 Shop Manuals for this bike, that was the recommended oil interval. This changed in 1973 along with all the other manuals, but that's how these started.
