Adjusting the clutch cable

You have to adjust the amount of free play at the lever. You should adjust the cable at the handlebar end so it's about in the middle of its adjustment, then use the two nuts down near the engine to set the initial free play. That way there is plenty of movement in either direction at the handlebar end for later adjustment.

To adjust freeplay: Wes doesn't measure the free play distance, but likes it to engage when the lever is about 1 inch away from the handlebar. That way there is enough movement that it doesn't creep when the lever is pulled all the way in, but it moves when the lever is released. He does it that way to try to prevent fatigue in his clutch hand. It doesn't seem to cause excessive wear on the clutch plates.

The book says 2-3mm slack in the cable. Wes leaves about 15mm because he doesn't like the stock lever throw. This has the side effect of rattling like hell, though.

The key: you need SOME slack to make sure the clutch engages fully. You also need to make sure the clutch disengages fully when the lever is at the bar. You can tell if this is the case or not by listening to the pitch of the engine as you shift from neutral to 1st with the clutch in on a hot motor. It should NOT change.

As long as those two points are met, it doesn't really matter what you do. It's all personal preference.