Clutch basket binds up when tightened

[HIGHRPM]

Hi everyone, I need help, big time. I have a 71 XS1B and am just putting it back together after a restore. I find, when I tighten the clutch basket nut ,the kick starter binds up 100 %. I can remove the plates completely and its the same. I have quadrupled checked that all my parts are right and in the right spot, Kick starter works properly, running by hand, very free and smooth, basket turns freely, but as you tighten the nut to spec and work the kick starter by hand you can feel the friction increase but no friction noise of any kind to the point , and when finally torqued to spec you cannot turn the basket with the kick starter, not until you back off the torque. I have hand sanded the washers with 1500 grit paper on a piece of glass to confirm they are not warped and very smooth for the bearing. The bearing slides smoothly, basket is in as new condition, pulled plugs so that I am not fighting any compression, but I can't get past this issue. I have owned and worked on XS650s since my new 71 and have never had this issue, so I am at a total loss. HELP ME PLEASE !!???????

 

[TwoManyXS1Bs]

Sounds like an issue with the clutch washers.
Here's some raw info to reference against your assembly:

Clutch spacing measurements:

First thin washer: Thickness = 1mm
Second thick washer: Thickness = 2mm

Spacer shaft: ID=0.979" OD=1.376" Thickness= 1.181"
Spacer shaft: ID = 24.9mm OD = 34.95mm
Spacer shaft: Width = 30mm

Third thin washer: Thickness = 1mm (not included)
Thrust washer (not included)

Fourth thick washer: Thickness = 2mm

Total clamped region = 1 + 2 + 30 + 2 == 35mm

Basket (Housing): ID=1.378" OD=2.045" Thickness=1.064"

0.002" between Spacer OD and Basket ID

 

[angus67]

The outer diameter on the first washer against the case bearing cant touch the case halves.
I cant remember off the top of my head that outer diameter, but i bet thats the issue.