It is my belief it is just the nature of wet clutches. I have never seen a harley that did not clunk. Tend to be worse when the primary is cold because the primary fluid is thicker. Because of the fluid between the plates the clutch never really "completely" disengages. There is always some engagement due to the fluid between the plates. Just the nature of the beast and it is part of what makes a harley a harley. The straight cut gears used for 1 through 4 or 5 also makes for a more harsh engagement, but straight cut gears are extremely strong. Using a thinner fluid like ATF would probably reduce the effect, but it will probably not go away.

A Harley just has certain things that are somewhat unique. Learn to embrace it and love it. Louder pipes and music help also.

 

I've found when adjusting my clutch, that the looser parameter, 1 turn (?) out from bottom, actually yields better results in clutch action. I've done the tighter 1/2 turn (?) out and was not happy with the action. And YES, I have to look at the manual every time!!!
Once your clutch is adjusted correctly, the clunk will lessen.

 

Last night when I reset, probably for the 6th time in last two weeks, the screw set easier. When I took up the slack up on cable the cable set a lot closer to the top. I'm now thinking discs were sticking. Anyway, set screw at about 3/4 out. Rode the hell out of bike for 10 miles, up and down steep hills and drag quick on highway. I'm still getting the normal clunk, occassionally, but everything, including ease of lever seems good. Thanks.

 

thanks CroK, i just bought a quart of the redline shockpruf v twin stuff hoping it was the same as the previous shockpruf heavy. i'm glad you verified that it's the stuff i wanted to put in my trans. i've been using royal purple in the motor and trans and primary, and it's worked well. then all of the sudden the max cycle royal purple went from 8 bucks a quart to over 14 bucks a quart. back to syn 3 for now anyway. i won't use amzoil because it's hard to find. the mobil 1 v twin at walmart will probably be my next oil. but i'm glad you verified that i got the right shockproof stuff. thanks, that's the answer i was looking for an unasked question.

 

I'm glad you got it sorted out. Clutches can be fickle sometimes.

On my old '69 Shovel I was running a primary belt and a dry clutch. Every so often I'd have to pull the clutch, clean the plates and friction surfaces with brake cleaner, and readjust. I got pretty quick at it after doing it a gazzilion times over the 12 years I rode that bike.