Not sure what lubing up the cable will do... but I'll give it a try!!
Is it normal for my clutch lever to hit my handle bar? In order for me to lock it in idle speed, (right now since i'm testing the engine and whatnot) I have the clutch like half way off my handle bar so I can fully squeeze the lever down so it can lock. And yes, I have the cable attached to the clutch arm securely with a 1/8" play room.