2006 Rocket III Clutch Lifter arm position.

When I adjust the cable for more free play " loosening it up", the clutch lever when pulled has resistance but doesn't engage the clutch . I seem to be at the very end of the adjustment at the clutch cover and the lever.

Are you 100% confident that you followed @warp9.9 's advice (earlier in this thread)? Show us a photo of the lifter arm position at rest and when you pull in the clutch lever. I have a feeling that you need to remove the cover and reinstall. When I had an issue I thought you had to wind the lower lever (spring there) to put tension on it before installing. That was my mistake. When you pull in the clutch lever that is when that spring gets wound so that when you let go the lever will return to normal position.

So, just *barely* move the lower lever to get it in the right position and then be sure to "scoop the lifter piece" as @warp9.9 described when reinstalling the cover. I have a feeling this may be the issue and/or you mentioned earlier a cable misrouting issue and there is still some kind of kink in the cable.
 
There are so many varibles here, it's almost impossible to diagnose. I know you don't want to hear it, but I'd suggest you take it all back apart and start over again. Check part numbers, pictures, and read read read on this forum. The "washer" you might be talking about, could be the "judder" washer. It can be left out, search here. Good luck!

RiiiTurbo said.......
My friend the stock fibers have one with a larger internal diameter so the spring and washer can sit inside it.
This is the innermost fiber.
However when you replace the stock fibers with say MTC ones, they are all the same so there is no room for the spring and washer anymore they are not required then.
(If you do cram them in then the clutch will be jammed).
There is the same amount of fibers as stock.
So you wouldn't add a disk, more replace that OEM one with the larger internal diameter.
 
I was fortunate to speak to Ed at Carpenter racing. I took the front cover off again and had no damage to pushrod and or lifter shaft.
I took all the components to his shop.
He stated the clutch fibers and steel plates are good. Only thing he could think of was removing the wavy washer due to new style plunger.
I'll meticulously follow the shop manual paying close attention to warp9.9 comments.
Hopefully it works. Would be nice to rip around on the rocket again .