4 Step Clutch Adjustment.
0. (Presteps) Using the clutch handle's quick cable tension adjustment screw, tighten it down completely and take off the clutch cover (on the right side of the motor).
1. By pulling the cable tight against the clutch lever and locking it with the small locking end bit, you want the clutch's camshaft perfectly flat against the bucking bar. If there is still some play, use the clutch handle's quick adjustment screw and unscrew it to add tension.
2. Put the clutch handle into the locked position.
3. Remove the locking screw from the flower nut on the left gear. Adjust the flower nut CCW in very slow increments, checking to see when your bike rolls freely. Put the locking screw back in to lock the flower nut.
4. Fire up the bike, lock the clutch and lift the back wheel off the ground. If the wheel moves, adjust the flower nut again. If it's good, go climb a hill and listen for your clutch slipping. If it's slipping, you need to adjust the flower nut again.