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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Looks like you have it in the right position ,to adjust it you have to unlock the double nut and adjust it back or forward. Does this picture help?

clutch 002.jpg