'81 clutch dragging, stuck in first gear

[drunkaroos]

Finishing up the restoration of my '81, and the clutch drags pretty badly (no matter what the clutch adjustment) and when its on the ground its stuck in first gear. On the center stand it runs through the gears nicely but as soon as I put it on the ground it gets stuck in first, won't even go in neutral. Anyone know what the issue might be? Hoping I wont have to drain the oil and open the crank case again.

 

[gggGary]

read through this thread lots of hints.
This thread covers just about everything related to a clutch on the XS650 Post #6 specifically about adjusting the freeplay, worm gear etc.