The bottom cable adjustment is where I left it after several attempts to get the clutch adjusted properly. Before that the adjustment was in the middle of the threaded portion. Never the less I'll do as you say and adjust as you describe to see if that works.
Alternatively, couldn't I just adjust the cable to where the clutch just dis-engages fully with the lever pinned against the hand grip, and where it starts to engage as soon as the lever is released from the hand grip? Wouldn't that ensure that there is enough free play?
Thanks for your help by the way!