[Sid Squid]

First disconnect the cable at both ends and make sure that your new cable isn't stiff/damaged - even with a new one it's not unknown - and make sure that it follows a route that doesn't put any tight bends or kinks in it, take care over this, it makes a big difference, not just to the feel of the clutch but also to the life of the cable.

That being well, make sure that the operating arm is at the bottom of it's travel, loosen the locknut and turn the centre screw in until it meets resistance and then back it out a tiny bit (1/8 of a turn), refit the cable ends and turn the lever adjuster nearly all the way in - toward maximium cable slack - and with the lower adjuster, set the cable slack roughly right, about 3/8"-1/2" at the tip of the lever, the upper of the two nuts in your picture is the adjuster nut - the arrow on the right, when that's right hold the adjuster so it doesn't move and nip up the lower nut - the locknut. Turn the bars from lock to lock and ensure that there is a little play at the end of the lever all the way through the travel of the steering, make fine adjustments with the lever adjuster.