Did you happen to lose the little ball bearing when you pulled the pressure plate off? In my case it was out, rolling, and missing before I even knew it was missing. Check out bike bandit's schematics for the clutch, you will find that little ball.
I replaced mine with a polished ball bearing, 3/16ths is what bike bandit said and the local hardware store had them for less than 50 cents each. MAKE SURE the ball bearing is missing, take everything off and tilt the bike over to make sure its gone, if not they will bind up and you will have way worse issues. When you adjust the arm there should be very little play in the arm, the adjustment rod/nut that goes through the pressure plate should have a 2'ish thread left AFTER the outside nut goes on and its adjusted. A quick search and you can find a lot of people have had this issue, including myself!