95 Flht with a six speed gear set from ultimate accessories.
The clutch cable and a new throw out bearing were replaced last year.

I adjusted the clutch.
I was cold.
I loosened the cable adjuster.
I loosened the clutch jam nut and backed out the clutch adjuster.
I turned it in until it touched the clutch.
I backed out the adjuster 1/2 turn and tightened the jam nut.
I readjusted the cable leaving an eighth in of play in the cable.
It seemed like it used a whole lot of the adjuster to get the cable play set.
The clutch works good and neutral is relatively easy to find.
The clutch engages when I release the lever.
The clutch disengages when I pull the lever.
The problem?
When I pull the lever all of the way in it is still about 1/4 to 1/2 inch from the grip.
Is this normal?
It just doesn't seem right.

 

If it was not that way before starting due to poorly made cable that is not correctly made for the proper cable and sheath lengths, my guess is when you screwed in in to touch no play, what you felt was that fine thread distorted slightly from the locknut.

Do no back cable length all the way. You need to fill some clutch with lever Then when you go for the touch for no play, once you hit it, go on in a few turns to debur screw. Now back back and go back in for no play. Do it two or three times but pull clutch lever so you actually fill the no play. This also get cam ***** in full fwd position.
Now with lever free and some noticeable play in cable, touch and back off 1/2 turn. Hold it with Allen and tighten locknut with box. That fine thread does not take much torque.

Check cable Freeplay at both locks setting cable at 1/32-1/16 max. It just gets loose.

 

No it isn't normal.
What brand clutch cable did you go with?

I guess the main thing is your clutch works so why not just run it the way it is?

 

A 1/4" is good you want some free play
friction zone

 

I think if you use it like that, you are using the end of the barrel on cable with both the clutch load and how hard you ram it into the end of the movement.

 

I like engagement just at about 1/4 of that initial pull on the lever.
I usually back off the allen nut 1/4 turn after it touches.
works for me. Stock clutch and cable with 30k mi on it. YMMV

 

The inner cable moves independently of the outer sheath.
The barrels on the ends of the outer sheath will never get more stress on them than you put there when adjusting.

OP's problem seems to be an inner cable that is too short for his application.

 

Understand exactly what you just said. However, my lever stops when it hits the bar. So the only load is the clutch pull. His is the clutch pull plus however hard he is pulling after it runs out of travel of the inner cable.

 

Exactly...
That's why I said his problem is his inner cable is too short.

The inner cable being too short isn't gonna add any extra tension to the cable jacket.

 

Inner cable, meaning clutch cable connected to the lever?
Only cable I know of LOL
Don’t understand how it can be too short.
I know correct length is vital for proper function. But too short and clutch is always engaged.
I like longer cables when ever possible