It is often easier to find neutral shifting down from second.
The distance between first and second is bigger than between the other gears. It has to be, It has an extra position in there.
As RG mentioned proper clutch adjustment is crucial. A well lubed cable and worm are crucial also. A well lubed clutch is easier to manipulate.
The XS650 clutch even while everything is perfect leaves some minor clutch drag. This is what effects ease of finding neutral and shifting. Improper adjustment increases this drag and makes things even harder.
In your repair manual the clutch adjustment procedures are correct. There are a few things that I do that eases the adjustment. At the point you loosen the lock nut and turn the adjuster screw I spin it back out a few turns and spin it in and out a few times to get a good feel for how much it takes to turn just the screw.
Now when, as the procedure calls for, you turn the screw in till you just feel resistance you will feel this increase much better. This is a critical part of the adjustment. Just as you feel resistance is when you have taken all the slack out of the mechanism between the adjuster and pressure plate.
At this point you need to add some free play back into this mechanism. The book calls for 1/4 turn back, I like 1/6 better. If you watch the nut as you are turning the screw 1/6th is one flat of the nut.
Now hold the screw from turning and snug the lock nut.
If you have this adjustment to tight the clutch can slip. Too loose and you won't open the pressure plate as much as it can. This leads to excessive clutch drag. Now adjust the lever to 1/16 to 1/8 inch free play. Again to tight it may slip. Too loose and not enough pressure plate movement.
Leo