MG Car Repair: Clutch difficulties 74 Midget, clutch hydraulics, clutch fork

Question
I'm in the middle of a complete restoration of a 1974 Midget.  I got the engine running quite nicely.  I have been struggling with the clutch hydraulics.  I recently replaced the master and slave cylinder, along with the short flex hose.  I even think I bleed it correctly.  Now, when the pedal is depressed, the slave moves the clutch fork about 1/2 to 3/4 inch.  Alas, I cannot get into any gears while the engine is running.  The shifter will enter all of the gears when the engine is not running.  Where should I go from here with my diagnosis, as I do not relish the thought of removing the engine and transmission to get to the physical clutch, especially if that is not the correct course of action.  Any direction and encouragement would be appreciated.
Corey

Answer
Hi Corey,
That depends on how the clutch pedal feels. If you only have about an inch free play or less and the pedal is firm right away and you don't have any extra carpet installed so the pedal can go all the way to the floor, then you need to do a test. On flat ground, hand brake off put the car in first gear and depress the clutch all the way to the floor and start the engine. If the car rolls forward you do have a clutch problem. If it does not, put the car in neutral and depress the clutch all the way and put it in 2nd gear providing the idle is below 1000 RPM.
Now with it idling push the shift lever into 1st and note if the car creeps forward.
If the clutch drags in any of the above modes and you have a firm pedal as soon as the inch of free play is taken up you do have an internal clutch problem.
Howard