Dave I don't think you mentioned it, but are the dots on the arm and clutch cover lined up? You might want to start there and then adjust the clutch if you haven't already.
Actually no, they are not lined up that well...I would have to lower the lever down some for them to line up, but then it will be in that position before where its not even disengaging when I pull the hand lever. The clutch lever would feel very slack.
So, I just did what laminar said and that was to adjust it to the point where the lever wont move up anymore by hand force. There I found it actually disengaged the clutch (But I'm not sure how well) when I pulled the hand lever, with a lot of resistance.
Maybe I should reconsider the routing. The bars are lower, so I might need to route in a new fashion?
But in the end, the two lines on the clutch cover, and the lever cannot seem to line up properly. I did take apart the spring mechanism inside the clutch cover when I went to polish it up, maybe I assembled it wrong?