TOPIC:

Kungfutoast wrote: ...removed the plates...honed them....

"Stock" or aftermarket plates?

honed -- perhaps more detail about the honing that was done, which plates, resulting finish, etc.

Thinking that engagement surfaces are possibly too rough and/or warped, thereby disallowing complete disengagement.

The FSM trouble-shooting guide also mentions possibilities of uneven spring tensions and clutch housing frozen on drive shaft.

Good Fortune!

Is it possible that the ball bearing is missing? See part #22 in diagram below. Ed

Thanks Patton. I suppose 'hone' is not the most accurate word. I was instructed to us a really fine, sandpaper 1000grit, and resurface the plates. I used a big piece of tile as my surface with the sandpaper on the tile.

The previous owner did a lot of stuff to this bike. The more I work on it I am finding that out. I am assuming these are the original plates. I'll double check the tension on the springs. I considered that a a possibility.

Ed, the ball is in place. You can rock the bike on its side and the ball will drop right out. It's definitely in there.

I'm afraid you were given some bad advice on sanding the clutch plates. Especially if your clutch was not slipping to start with. Most clutch plates have dimples that retain some oil. This helps with the the release or disengagement. You may have sanded these off. Sometimes the old "if it ain't broke, don't fix it" is best.
It might be time to start with the basics.
Remove the clutch springs, spring plate and all clutch disks. Put the bike in gear and either rock it back and forth or push the kick starter. Referring to 650Ed's diagram above. The inner clutch hub (19) and outer clutch housing(17)should spin independent of each other. If they don't, you've got a frozen clutch housing bearing (15) or bushing (18). Next, separate all all the clutch plates/disks and soak them in oil overnight. Do not wipe them dry. Leave them wet and dripping with oil. Install one disk/plate at a time, Repeat the procedure above to make sure the clutch is releasing at each step. Pay attention to the order. Start with a fiber plate and end with a fiber plate. With all the disk/plates installed, don't fully tighten the clutch springs. Check the clutch release again. If everything works to this point, tighten the springs. Repeat the release test using the clutch lever. At any point, if the clutch won't release, look at what you just did and figure out why it's causing the problem. This might take an hour or two, but you'll find the problem.
Good luck.

Rad! Thanks MDZ. I'll soak everything tonight and re-assemble tomorrow. I'll post back with results soon.

Ah ha!
Thanks MDZ,
After removing and soaking the plates over night and installing them one at a time rocking the bike forward and back with each plate I finally found what the problem is. Well where it lies. The outer clutch housing is locked up. Can't believe I didn't notice it the first time. New guy mistake I guess. I also observed that with the addition of each plate more and more force was needed to move the bike. But I am assuming that is because more friction is built up by each plate.

Before I get a clutch puller and remove parts do any of you have any advice or guidance? Namely what exactly is malfunctioning. I am thinking maybe the Needle Bearing (3)? Is the problem possibly in the drive shaft...

(attached is the exploded diagram from my manual)

More resistance with each set of plates would be normal. Did the clutch hubs (4 & 6) spin independently with little resistance when all plates were removed? The needle bearing / thrust washer are fine if they did. If you do need to remove the hub, the lock washer (9) will typically have a tab bent flat against the nut (10). You will need to bend it back flat with a chisel/flat punch. There is a special tool to hold the clutch hub, but I've always been able to break the nut loose with an impact wrench.

Only the the inner clutch hub (6) moves freely. The outer clutch hub (4) isn't budging, With or with out plates. The only movement it has is from chain slack. Which isn't much. A mil or or 2.

That's normal. The inner hub is linked to the rear wheel. The outer hub is linked to the engine. As long as they are not locked together, you are good. Push the kickstater and you'll see the outer hub spin while the inner hub doesn't. You just need independent movement. Clamping Friction from the clutch springs on the plates lock the outer (engine) to the inner (rear wheel) to give you drive. The clutch lever pushes the spring plate (13) apart from the hub, The additional space reduces the clamping force, allowing slip between the plates. Your problem is that the plate friction is to great even with the spring pressure removed. If the plates are well oiled, and won't release regardless, I'm afraid the sanding has made them to rough. Put it back together and give it one more try. What feels like a lot of resistance by hand may be overcome by the engine power. There will always be some drag in a clutch. If you've ever pushed a bike in neutral and then tried it in gear with the clutch pulled you'll know what I mean. You can push it, but the drag makes it harder. If you do get it running and get the clutch to release even slightly, it will improve on it's own. The plate will wear themselves in somewhat. Start it. hold the brakes, pull in the clutch and drop it in gear. Unfortunately, the next step is to replace the clutch plates

Outer clutch hub is linked to the engine crankshaft, it will not rotate freely.

Thanks for like the hundredth time MDZ. You're a great help. After putting it all back together no matter how loose the springs are the clutch still doesn't disengage. Not until I remove the Spring plate. So it sounds like there is to much friction and I need new plates. I'm stumped because this was the problem I had before I sanded the plates.

I'm seeing plates on ebay for a really low price. Even if it's not the issue I'm going to put new ones in and reduce the problem from there. I'll keep you all posted as things develop and hopefully resolve the issue.

Make sure you have the right number of friction discs and steel plates.
Also, never discount the effects of a stretchy-soft clutch cable (inner) about to go bad...