yes its on the on position. i did that but when i desengage the clutch(button out) the bike comes to a halt. the sprocket on the motor is hard to rotate when i peddle.
try to forget about the clutch button, for a minute. just worry about the clutch lever itself.
the sprocket is
going to be hard to spin while pedaling...thats compression in your motor, and thats a
good thing. not to disagree with anyone, but i dont feel you need to take any links out of your chain because it doesnt look
extremely loose. if you move the roller up a little, it may take up the extra slack.
try turning choke lever all the way up, pedal (quickly), let clutch out. let it go POP! chug-chug. stop, let the choke lever down to about halfway. try it again.
i have a bike that is sooo tricky to start, because the choke has to be in its 'sweet spot'