So I had my clutch basket binding after a re-assembly. Some surfing got me this thread, as well as some on TT and Max-zuke, talking about having to shave some off the basket to get the adequate clearance.
The above pdf was no longer available, so I went ahead with the job, and figured I'd add to the knowledge base here.
What happens that when you tighten the clutch basket nut to the proscribed torque (40-60 NM), the inner basket should turn freely. Mine wasn't. As described by others, the inner and outer thrust washers combined with the spacer collar was not allowing things to rotate properly.
Here's the assembly in place:
That's a MotionPro clutch holder, a very useful tool for more than just what it was intended for. Not expensive, but a must have in any bike wrencher's toolbox. Get one now, even if you don't need it right away, you'll find it's really handy for a lot of things.
The holder is clamped on the inner basket, you can see the nut and tabbed lock washer in the center. Minus the holder, that part should spin freely. If it doesn't, here's what you do:
You'll need a couple of sheets of new emery cloth. I taped mine down to my workbench so that I could start slowly polishing down the gear on the back of the outer basket. This would normally face towards the transmission.
Here is the work station, and you can see the gear, end face already shiny after a few passes:
In a random circular pattern, I proceeded to slowly grind down the end face. You're only taking off a few thousand's of an inch, but it's a hardened gear, so it ain't fast.
I would clean it off, re=oil the whole thing, torque it back in place, and see if it was spinning freely. Can't put material back, so I took my time.
I also took a small piece of emery cloth and polished down the face on the other side, where the other thrust washer rides:
You can see it there as the two half moon shapes either side of the shaft hole.
Works great now. Make sure before every check you clean off all the grit and re-oil it generously, so as to not get a false reading. Ain't fast, but this works.
Hope this helps someone.