I recently upgraded my clutch and compensator on my 07 Ultra Classic....along with a few other upgrades. I used the Barnett carbon fiber clutch and steels and installed a new basket. I also upgraded to a Screaming Eagle compensator along with a new chain. after about 200 miles I started hearing a lot of chatter at idle, my transmission shifter shaft has accessive play so I figured I would replace the bushing and shaft. When I pulled the outer primary cover there was alot of what I am calling sludge on the bottom of the primary. Is this normal, break in? I didn't warm up the bike before draining the oil and pulling the primary.

 

I would check your clutch friction material. That "sludge" may be what's left of the friction disks.

 

And what kind of lubricant are you using in the primary? Is it compatible with the carbon fiber?

Also check your inner primary bearing to make sure it has not walked into the seal.

 

Barnett says you can use any primary fluid for HD primaries. I use the Red Line V-Twin primary fluid. I did replace the inner primary bearing and seal when I did the clutch, I hope I instaled that retaing clip correct, we will see.