TOPIC:

I highly recommend that you pick up a factory service manual!

I have the Clymer manual and also downloaded a Manual for the KZ1100 which could be the factory manual. I may pick one up from the Kawasaki dealer.

I got the bike back together with the discs sent to me and the clutch releases and engages OK.
I still don't understand what the problem was.

I was out tonight and blew the fuse for the headlight and tail light. A few little bugs but it should be a good bike.

I'm betting the problem was the clutch friction plates were affected by using car oil. Been there / done that. Ed

The oil I was using would effect the clutch slipping.
I don't see how it would cause the dragging.

I have changed the oil, It may give me an extra 50 hp and double my fuel mileage or it may help the clutch, maybe.

I installed the discs correctly according to the manuals. It could be how they were assembled before bu I do not see how.

On my 77 there are supposed to be 8 friction plates and 7 steel plates.......again I don't know if it's the same with the J motor you have but I believe there will be one less steel plate as there should be a friction plate on either end of the assembly. That may not have been the case when you got the bike, maybe there was a steel plate on the outside, sometimes PO's add plates to pad out the clutch to "fix"a problem. All too often the scenario of...."what was the previous owner THINKING?????"........crops up in many new purchases. Go over everything - top to bottom so you are sure of what you have. The issue of the correct oil to use (must have JASO-MA on the label) is really vital.......now as for that extra 50 hp.....

I could have overlooked the dragging problem when taking the discs out, it was a real hassle getting them out, that is why I asked about removing the clutch assembly including the outer clutch housing. I ended up using paper clips with a bend or hook on the end, so once a plate was wiggled enough to get the hook behind it could be pulled out.
With a google search on clutch problems when the clutch is slipping badly an extra friction disc is added and maybe leaving one of the steel plates out. The PO had most of the maintenance and repair done by someone else.
I feel much better stopping and starting at an intersection knowing the clutch will disengage instead of yanking the bike forward.

Thanks for the help.