Start by going over all the adjustment points.
Screw the cable adjuster all the way in on the handle grip. Screw the cable adjuster all the way in where the clutch cable enters the engine case. Take the chrome cover off the clutch and you will see the end of the cable where it attaches to the clutch release arm. There is a locknut on the pivot. Loosen it up and with a flat screwdriver back out the clutch center (counter-clockwise) until it is loose. Then, screw the center back in gently until you feel resistance. From this point on the center is trying to disengage the clutch, so as soon as you feel any resistance back the center off 1/4 to 1/2 turn and tighten the locknut. Now, use the cable adjuster on the outside of the engine case to take out the slack until you have about an inch of freeplay at the tip of the clutch lever. If you can't get it all the way out with the adjuster on the case, make the last adjustments with the adjuster on the clutch lever itself.
Another possible cause is the wrong cable. On another bike of mine, I installed an aftermarket clutch cable and experienced the same problem you have. It turns out the "exposed" or movable part (not the outer sheath) of the new cable was an inch or so shorter than the OEM Honda one, so by the time you adjusted for free play and such, it would pull the release mechanism too far, and it would jam. On the 750, all the release mechanism parts are inside the case, with plenty of lubricant, so I doubt any internal parts would be worn.
If you want, I can scan the part of the owner's manual that describes this procedure with pictures, if it would be of more help.