It probably isn't completely bled. Either that or the pushrod is not the correct length.

I miss the old days of mechanical clutch linkages that were adjustable.

 

Thanks for the help. I don't think the pushrod is the problem. it matches up to the old one. Actually there is one part that is (sort of) adjustable. the lever that the pushrod goes on is splined so maybe I can reposition it so that it pushes the rod in further. I think you're right about air still being in the system, so I'll try that first.

 

I tried bleeding it again and got no air. So I took the lever loose and used a pair of vice grips to push the rod in enough to move the lever one notch on the splines. The clutch seems to be working fine, but there is no free play at all. It starts engaging about 1/3 of the way up and is fully engaged by 2/3 of the clutch travel. I think this job is done! Thanks for all the help.