i just reread and have a question the where the clutch pin in is take it out and turn your motor to see if their is a little bearing the same diameter of the pin you might need a magnet to get it out, if their is no bearing you will need to get one. If their is one put the bearing back in put a little grease in the hole first and the pin. proceed below
tried t o ajust the inner spring no luck! but now that ive loosen the flower nut i can roll the bike with out the back tire draging...and to ansewr your question yes the arm did move with the pin still engaged freely if carb wasnt there could have done 360 but now when i put it back on its stuck in this pos as seen in the pic
Ok take the clutch arm cover off again,
in that picture the position of the clutch arm. If the arm looks like that and your clutch is not disengaged you need to tighten up the inner spring some more try a full revolution, take the flower nut off this time so that you can get a good turn on it. if you cannot tighten it up anymore with the flower nut off skip this step.
leave the cover for the flower nut off for the time being.
when you put the clutch arm cover on line up the flat spot on the clutch arm so that it meets with the clutch pin.
now disengage the clutch and engauge the clutch a few times, while you are doing that look where the flower nut goes you should be seeing movement of the center rod where the flower nut goes.
while you have the flower nut off this would be a good time to clean the clutch pads, take off the clutch wheel the sliver one that is just a plate and look at the inside where the clutch pads meet the plate. is the plate shinny if so get a flat file and file it flat all around the surface to roughenit up, if you have some brake cleaner around spray some on the friction pads and let it dry.
if you can see a good amount of movement I'd say about 3/8 of an inch you can put the flower nut back on leave the little screw off that holds the position of the flower nut. do not wrench the flower nut on pull the clutch in and tighten it up a little,
try starting your bike now, if you cannot disengage the clutch tighten up the nut a little more and try again. after you find a point that the motor can start tighten the flower nut a 1/4 turn and reassemble.
good luck