Sean,
You're for sure correct about the adjuster. Clockwise and in disengages the clutch a little more.
I've actually tried tightening a bit more, but the bike will begin to roll forward while in gear (clutch out). This is with great effort, mind you. And then pulling the clutch in, it doesn't seem to roll any easier. It almost seems like actuating the clutch lever isn't pushing the lift plate far enough, now that I type this out.