Clutch

Look at section 6 page 38 of the manual I linked. The frictions have a spiral cut. Not straight like my Kz engines.

Changed the oil, while the drain plug was out added a quart to attempt to flush any hold over out. Double checked all the cable adjustments and the adjuster under the left hand side cover. Everything looked good., greased, no binding etc.

Pulled off the clutch cover on the right hand side and took a look at the plates. The after market ones were not directional. Correct order friction, steel, friction, .... Pulled one out to compare to the OEM ones I pulled out. The tabs for sure were significantly thinner, the plates themselves may have been but my eyes aren't good enough without a micrometer. Ordered a set of OEM friction plates.

That couldnt have been the original culprit like TexasKZ said I probably have only created other issues while swapping parts. Got a few days before I can slap the other plates on so we'll see.

You may have found the problem. What I find is the friction plate thickness for the J that are directional (spiral) is 2.9 - 3.1mm. The KZ that have the 90 deg segments are 3.7 - 3.9mm.

For the OP.
In case you are not aware, there were essentially three different KZ1000 engines.
The early Z1 based 1015cc.
The MKII, an improved 1015cc.
The J engine, 998cc.
The very early P series bikes used the 1015cc, but changed to the 998cc in 1982 ( a year after the other models changed.) While some parts interchange, many do not. Yours should have the 998cc J engine. It is important when buying parts to be absolutely sure which one the parts are for.
The clutch is one of the differences in the J engine.

I have used all Kawasaki OEM parts minus the friction plates that I got from Z1enterprises. I did follow the clymer book for the adjustments. Again even when I have loosened the cover to remove all possible pressure on the push rod the engine still wont stall in gear despite the back tire not rotating or the rear brake engaged

mikestanley464 wrote: I have used all Kawasaki OEM parts minus the friction plates that I got from Z1enterprises. I did follow the clymer book for the adjustments. Again even when I have loosened the cover to remove all possible pressure on the push rod the engine still wont stall in gear despite the back tire not rotating or the rear brake engaged

Can I ask why you quoted this post only?

Busted!!!

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The fact that the problem started when you pulled the chain cover means you caused the problem at that point. My first thought is you may have lost a dowel pin on the cover that keeps it inline. Then tightened the cover and bent the clutch rod preventing full release. Pull the rod, roll it on a flat surface and see if it's straight. Also, if it's bent, you'll have a hard time pulling the rod out. It should slide out with no resistance.

Ok so here's where I am: Checked my clutch plates, they were correct for the bike, but we're a +1 plate kit. Added the extra plate (can't comment in why I thought they just included an extra friction and steel), springs torqued to spec everything on the right looked good. Took sprocket and other cover off on the left side. Checked my springs on my shifter, etc. Bueno. Pulled push rod rolled around no deformities, in and out smoothly. Greased everything checked ball and ramp properly set. Set screw for cable as loose as it will go with just a 1/4 back. Bike started, warmed up, stalled in gear awesome. Went to ride around the block. Clutch slips and bike won't go beyond 25ish.

From what I've seen and done I would think that I wouldnt be able to even get the clutch to disengaged.

Really fighting dropping it off at a shop.

Is ther free play in the clutch lever. You should be able to move the clutch lever from all the way out about a 1/4” before you feel resistance.

I put a bunch of slack in the cable to try to get it to fully engage with no noticable change

No noise when slipping? Or maybe the first time you took off?

I keep thinking the cause must have been instigated changing that output shaft seal. Remove the front sprocket again for the hell of it. See what the splines look like. Sheered off splines would give you clutch slipping symptoms, but would think there would have been some noise.