Clutch release arm

Having trouble with adjustment. Just bought a 340 Swinger 4 speed car. To put in first or change gears, pedal has to be on the floor. When releasing clutch, it engages within 2-3 inches. Also, when clutch is in, the release arm is touching the back of opening in the scattershield. Would like to adjust pedal up about half way.Any thoughts.(hope these photo's help).

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