Motorcycle Repair: Clutch drags, motorcycle clutches, manual clutch

Question
2005 Suzuki M50
Converted it from a manual clutch to a hydraulic clutch using the S50 model parts. Both have the same engine. There was a slightly longer push rod but other than that the items bolt right up.  I have blead and blead the line but the clutch would not full dis-engage. I pulled the right {clutch cover} and can see that the clutch appears to be disengaging OK. It moves the outer part of the clutch basket about 1/8" and I can slide the clutch plates back and forth. This much play on any other bike would cause it not to go but on this setup it drags. To make things worse I re-installed the manual clutch and it still did the same thing.
Is it possible that from the weeks of sitting that the oil drained off of the clutch plates and that is the problem?  I haven't started it because that would require putting the right case cover and exhaust back on and if I still need to do something in there I don't wan't to have to undo it all.  I'm guessing a good synthetic oil might cure it but what else could have changed ?
BTW: This is a new bike. Only 130 miles. The clutch change was an ADA thing for my arthritis.
Got any ideas?  Thanks.

Answer
Hi Chris,

It sounds as if the clutch is moving properly. It's alot of work, but I would assemble all parts, start the engine, and inspect clutch operation.

The longer push rod should not affect disengagement.

As you suspect, the clutch may need to be rotating in a bath of oil before it works properly.

If you switch to synthetic oil, be certain to use a brand labeled for use with motorcycle clutches.

Respectfully,
Mark Shively