you mean, the bike will still roll forward/backward with the clutch released? have you checked the clutch cable adjustments?
i had a problem with an engine, that the woodruff key that holds the drive sprocket onto the shaft went awol.
have you called duane (dax)? he's pretty good at dianosing problems and assisting you over the phone.
You are saying that the clutch doesn't disengage?
Adjust the adjustments on the cable halfway in on both ends, loosen the cable end piece, push the lever over tight, then tighten the cable end down tight while holding it against the lever arm.
Adjust the cable end adjustments until there is 1/16"-1/8" of freeplay in the lever end.