Help with clutch problem on old RM250

Hi all! I know this site is mainly for SVs, but Im needing some help on my old RM. I have been in the process of rebuilding a 1986 RM250 for a while now. I got the engine running halfway decent, but now im having problems with the clutch. It seems to not be engaging. While the bike is off, if i put the bike into gear it does not want to roll. If i push it i can hear the piston moving (i have the exhaust off). While the bike is started, if i put it in gear it slowly tries to move. I have the manual for this bike but it does not give any tips on trouble shooting this problem, it just tells how to replace the clutch. Does anyone have any ideas? Is it possible that the clutch lever is not pulling the cable far enough (it only moves about 1")? Any info will be appreciated