might as well install my new cable now too that I've been putting off haha

If i'm still on the right problem--you said put it in gear & it doesn't drive. Is it defo clicking drum around into gear. Was going to say no key in the crank gear & its spinning, but no--it's splined, bugger. Spline center in the clutch not ripped out--did that on my 350 Matchy 30 miles from home up in the hills in 1962--yes there was a "62 lol.
Ok, as its layed out & has been assembled it should work providing you have rod clearance. If you removed the actuator cover it 'must' drive in gear. Only other thing i can come up with is if the plates stack up too narrow overall & the mushroom had thingy is sitting against the shaft--cant go in further--& the pressure plate is hard against it before compressing the plates. With the cover of the clutch just put it in first--any gear, third for for a bit more leverage, then push it or try to & see if the clutch pressure plate revolves.
If i'm on the wrong end of the story then back to the start. But thought she ain't driving--opposite to not freeing up when lever is pulled.

yes just as a refresher. It either doesnt engage all the way or it engages too much and the clutch never fully disengages. Any adjustment I do wont fix it right. Problem being it is dying on deceleration as clutch wont desengage all the way.

Umm, ok i'm reverting back to the actuator sticking then not sticking. I dunno, actuator split & spreading & not wanting to lift the clutch--then when lifted it's then sticking & not wanting to return back to giving rod clearance. I've Gotta go do some work. Gettin sore eyes from looking lol.

The basket fingers look like they have grooves. This is referred to as "combed". If the the grooves are deep enough they will cause the friction plate tabs to get hung up and not move in and out smoothly. You can file the fingers with a flat file but this makes the basket a little more weak and the plate tabs will have some extra motion causing more combing but if you don't ride hard is will be ok.

The nylon spiral on the actuator is also a possible problem.

Before putting the right side crankcase cover check the alignment of the primary gears and the actuation of the clutch after you adjust the actuator and cable. The parts diagram is a little confusing as to the order of assembly.

And be careful not to pinch the thrust bearing with the spacer.

I did notice the combing and wasnt sure if it was a problem to be dealt with. I might have another basket to put in it.. or buy one. My plan is to take pictures along the way on assembly and post them for verification athough I beleive I've done it right before. Thanks 

In the middle of putting it back together l. Just tightened down the big nut holding it back together. The basket still has some play in it which I down understand it seems to slide in and out but the nut is torqued down where it needs to be. I’m hoping that when I pulled it out the thin bearing didn’t fall of the spacer but I’m assuming the nut in putting pressure there so that can’t happen? 

Is the basket gear moving in & out or is it just the basket play in how its held to the gear which won't matter within limits i guess. Gear movement yes would relate to spacing & washers. Nothing left on the bench!!. Sorry, had to ask.

Haha I appreciate you asking as I had to reinstall once or twice forgetting a few things. Whole assembly moves in/out and no leftover parts. It went small bearing then a washer then the spacer goes in those. Then the gear. Then the basket. Then the inside part of basket. And then nut and washer and done. 

Got back to it tonight as I gave up on my RD as I didn’t want to do the wiring. Uninstalled everything out everything back and actually the clutch seems to be operating correctly atleast the little bit I tested it out with the clutch cover still off. But the basket part 1 in the diagram still has some play if I try and wiggle it back and forth. I can’t seem to find out why. I have all the plates and friction plates the spring bolts are tightened down. I appear to have everything in the diagram. I don’t quite get it. It probably can move a millimeter maybe.