How do you adjust the hydraulic clutch? I have a 302 with a 5 speed trans and it is still using the hydraulic clutch and it does let out until the pedal is almost all the way out.
slave or throw-out?
I don't know the difference the hydraulic hose goes into the bell housing so I would think Throwout Bearing.
As far as I know, hydraulic throw out bearings (HTOB) do NOT adjust. They are like disc brake calipers. They only back off enough for minimal clearance...more or less self adjusting. Some aftermarket HTOB require shimming or adjustment at installation. Mine had to be mocked up and measured and returned to the manufacturer to install the correct piston. Most HTOB do not have 'free play' like manual linkage bearings. That is, HTOB are made to ride on the clutch all the time. Mine engages high and has no free play at the top. If it doesn't slip, I'd learn to live with it. The 6:1 pedal ration is critical for pedal effort and feel. Did you install everything new? Has it ever had the appropriate 'feel'?
Gasman thanks that is what I was thinking since I saw no way to adjust it and it sounds just like your clutch.