Clutch is dragging with the handle fully in.

I am working on a 1979  kz650b3 and I finally got a chain for the bike and put it on yesterday. When I put the bike in gear and pull in the clutch, the bike is hard to move as the clutch is dragging. I cannot cure the issue by adjusting the clutch and am hoping that the clutch is sticky from years of sitting and will loosen up once it gets a few miles on it.
Wishful thinking,
Joe

You may be right, with a bit of movement you can expect the clutch to 'free up' if it's gunked in place from years of sitting.
It can also be the wrong oil. Oil that is too thick will cause the clutch to drag significantly until warmed up. If you're unfamiliar with bikes and come from the car world, it's not uncommon for people to think that an older, possibly worn engine needs a thicker oil and put something too thick in. Try changing to a 10W to rule out the too-thick oil case. 20W oil may work fine too in hot places, but with modern oils you shouldn't really need to do this. I use a 10W-50 to cover all bases.

Make sure whatever oil you choose is JASO-MA rated. Must be for a wet clutch system. Fingers crossed they are just stuck. 

Additionally to oil issues are you aware there are 3 adjustment areas on 650 clutch? On the lever, half way down the cable and on the pushrod cam located on the front sprocket cover.