Rear wheel spinning w/o clutch

When I disengage the clutch (idle) my back wheel still spins. I have the cable as loose as it wants to go, and I took my air filter off and there was a bit of a gap between the bottom of the barrel and the carb, letting air get through, about 1/4 an inch. thoughts?
 
your clutch & cable are not adjusted properly

search this board for about 200 posts on proper adjustment
 
Here's another tutorial if Greg's didn't answer your question > http://motorbicycling.com/showthread.php?t=22726

You said, "I have the cable as loose as it wants to go". That sounds like your problem. The clutch cable should never really be 'loose'.
As long as the engine idles well don't worry about the throttle slide position. 1/4" sounds like a lot but as long as the idle speed isn't too hight, don't worry.

Tom
 
I meant the carburetor cable, my point was that I thought air was going into carb when it wasn't supposed to be. never thought about clutch
 
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