Hey,
I replaced the basket in my 90' cr250 w/ a hinson and had major problems w/ fitment also. While the hinson baskets for 92' and newer crs are apparently perfect, I believe the clutch in our bikes is very similar and might even be exactly the same.
The only way I could get it to fit somewhat correctly was to add a thinner washer between the inner hub and the basket. The likely problem is your plates are not able to separate enough to allow them to slide the way they should. On top of that,what I noticed is that, with the stock washer in place, you face the risk of the last friction plate sliding out of the fingers completely. When I installed the basket with stock washer, the bike would cut off when I put it into first.
I've been running the basket all season, and it does ok with that thinner washer, provided that the cable tension is to the point where it's a real pain in the ass to pull the lever.
I did a nearly complete rebuild of the bike last winter, and aside from a couple of wheel and swingarm bearings, this clutch basket is about the only thing keeping the bike from being almost 'like new'--needless to say, I'm still pretty pissed about that damn clutch basket.
Thundergoat: does my scenario sound anything like what happened w/ your bike?
Thanks,
-John