If I'm reading that right, it sounds like you still have slack in the clutch cable itself. At the lever on the handlebars, turn the little adjuster where the cable comes out all the way up against the lever. Where the cable connects to the clutch arm (at the motor) is where you need to start. I usually lock a pair of vice grips on to the cable, then loosen the keeper screw on the little brass widget (part name escapes me just now) on the cable. Pull on the cable, slide that keeper forward until it's in snug contact with the clutch arm, and tighten it's screw again. I use the vice grips so that I can use a pair of needle nose pliers between them and the keeper, like a lever, to snug that bit up to the arm. Fine tune by adjusting at the clutch lever (on handlebars) after that.
To lube the chain, I get a bit messy usually. I put a little oil in a shallow dish or jar. Take a piece of paper towel, roll it up and fold it over. Use the two ends (not the fold) and dip in the oil (allow to drain a few seconds), then use it like a mop brush on the BBQ. Moving the chain while doing so helps. Once the chain is all oily, you can either take it for a ride or put some cardboard under it (for any drips) and leave it overnight and ride it. Note, whenever I do this I always do both the chains. Might as well, since you're there anyway.