Clutch Spring Installed Correctly

I too have aftermarket front suspension. You can still have the engine in several positions, trust me on this. What matters with all of this is this, your z-bar must be parallel to the ground and your adjustment rod should be in the ballpark parallel to it's line of thrust and angle. If all of this is good, your good. Should have lube on the bearing retainer that the throwout bearing slides on. Lube on the fork pivot points and clutch linkage. The spring is there to simply keep the throwout bearing away from the clutch fingers.
If you are having difficulty going into low gear, but goes into 2nd easier, your clutch probably is not disengaging all the way.
Yes for some reason the engine is setback about 3/4 to 1 inch. No adjustment on the RMS system that I can see. I'm just now seeing these things after years of building and restoration. Z bar is parallel as I moved the ball stud for it back on the frame. New drive shaft so that change is accounted for there. The rear of the shifter was up against the tunnel. I need to call Bill at RMS to get his take on it. Theres no play left in the pedal so Im not sure how to get more disengagement. The previous clutch which is the same as this one did not have this problem but it had the wrong linkage setup. The clutch would sometimes hangup on release making it jerky but it went into first OK. Thats what started all this investigation.