StripeyGT

I recently had my clutch replaced and installed a Steeda adjustable cable kit and was looking for tips on how to properly adjust it. I came across this post from cobracharmer back in '05 that I found EXTREMELY helpful and thought I'd share it. This helped to dial in my clutch just right!

Thanks to cobracharmer (if you're still around).

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This can be very tricky for many people, and there tends to be a lot of taboo surrounding clutch adjustment. A common myth is that you need slack in the cable. This is not completely true. The pressure plates are designed to have constant preload-cable pressure on them. If you have a loose cable with slack, your clutch will be adjusted too loosely, and will grab right off the floor, causing the clutch not to disengage all the way. The Transmission will be tough to put into gear, and may even roll forward on flat ground (this all happened to me).
Adjust the firewall adjuster to the left to tighten the cable. Tighten it until you feel pressure on the cable. If you have a locking type firewall adjuster, then you will need to screw the inner ring away from the firewall to unlock and adjust. If you've got the UPR quadrant, or any other that uses an allen wrench key to secure adjustment, loosen that.
Get into the car. Press the clutch down, carefully and slowly. Really pay attention to the feel of the clutch. If you pay attention, right about where the clutch pedal is even in height with the brake pedal, the clutch pedal will suddenly get stiffer to press down. Everything before that point will feel kind of mushy. THIS IS KEY TO ADJUSTMENT! That point where the clutch pedal gets stiffer is where the clutch actually begins to disengage from the engine so you can shift gears.
This is where it gets a little tricky, and personal preference takes over. The trick is to get it adjusted tight enough so that it disengages all the way, yet is not so tight that it is constantly disengaging (like riding the clutch).
Most often, the most common way to adjust, is to adjust to within a half inch/inch of that disengagement point, so that you have just a tiny bit of slack in the cable.
Properly adjusted, the clutch will begin to engage or grab about halfway up or so in its travel. If the clutch engages/grabs right off the floor, then you are adjusted too loosely, and if it engages/grabs way too high, then you are too tight, (or your clutch is toast if adjustment won't fix that). A clutch that grabs right off of the floor will cause difficult putting into gears, will cause it to roll on flat surfaces, and will premature clutch wear, and transmission wear. On the other hand, a clutch that grabs too high can cause it to be constantly disengaging when driving, (just like riding the clutch pedal with your left leg) and will cause clutch wear. If you don't feel that inch/half inch of play, you are too tight. Oppositely, if you have too much slack up top, you may not be disengaging all the way.
If, when tightening the adjustment, it causes your clutch to engage higher than what you prefer when letting up on the pedal, loosen up on the adjustment. In this case, just be sure that when you let off the clutch from the floor that you have to let up an inch or so before it begins to engage. This will ensure that your clutch is not adjusted too loosely, and is disengaging all the way. If it picks up right off the floor, this is too loose.
To lock the adjustment in, screw the inner ring against the firewall, or tighten that Allen wrench.
Note: According to Maximum Motor Sports, with proper adjustment of the clutch, the clutch pedal will physically sit approximately two inches above the brake pedal. If you want to bring the clutch pedal height down where it is equal with the brake pedal, Maximum Motor Sports sells a kit to do this.

Jfsram

In 100 % agreement with Cobracharmers set up. Preloaded is not only the best set up. It's how the factory system self adjusts too also.
Many hydraulic set ups are also run preloaded.

Another thing he did not mention is it also makes for quicker shifts. If you need to go to the carpet to disengage your clutch. You are NOT going to shift as quick as me, only needing to go half way to disengage. Even if you still bring the pedal to the carpet, you increase your chances of complete shift.

I quoted the myth part because it's not really a myth. Older cars like a 60's Mopar or Ford were run with clearance between the throwout bearing and the pressure plate fingers.