Thanks guys, It's hydraulic. I took it all apart again today and went thru the whole works including the push rods and clutch slave/sprocket cover. Everything on that side was OK so I laid out the clutch plates, hubs and all the other related parts on that side and everything looked right. I grabbed the book and started reading it thru again and it finally hit me, I swear the book tells you to put the concaved clutch springs in backward so there was never any pressure on the plates, but in Clymer's defence I have never seen a clutch assembly like this in my 25+ years of tinkering with bikes. What is was doing is when I put it in gear and it just sit there and not even try to move, I had a full pressure on the lever and maybe too much because the hub couldn't expand any more. With the lever out the clutch springs were pushing the plates apart instead of together. I put five or six miles on it and it seemed to be working.