okay,let's re trace our steps abit here before you take it way to far apart.....
-releasing clutch kills the engine....and with killing it i mean,it just can't keep running,as if your bike is against a wall...
-it does that in neutral as well as in gear..
-if you put it on the center stand and you rotate the rear tire...is that possible or doesn't it move..
-does it do the last one in neutral AND in gear or just in gear..
-if rear wheel DOES move in gear,does it rotate the engine...
okay,what I would do is take the clutch apart first...remove the plates,basket etc.... this will leave you with just the shaft that comes out of the tranny.....
rotate that shaft,what happens,is it stuck or does it rotate freely in neutral.
then put it in gear and see if it moves the rear wheel when you turn that shaft.....
this will tell ya if the tranny is seized up or not....