First off stop bending anything on your bike. I don't recall anything that requires bending. There should have been a slotted spot on the bottom side that would allow the end of the cable to slide into. I know its sounds kinda confusing, but look at it and maybe you'll see what I mean. Check this again to make sure that the cable is connected correctly.
While you have the cover off, see if you feel confident in removing the rod behind the actuating arm. These can wear out and bend. Roll it on a flat surface to check if it's bent. Call your dealer and get the spec to see if it's worn enough to require replacement. These are usually pretty cheap.
Take the clutch cover off (make sure you've drained the oil). Check the clutch basket 'teeth' for notches made by the clutch plates. If they're bad enough they can cause the clutch to stick. If they aren't too bad you can take a file and file them even (after you remove all the clutch plates). At this point do yourself a favor, especially if you've just picked up the bike - replace (at least) the clutch springs. They are cheap and easy to get at, behind the six (10mm if I remember) bolts. Remeber to remove and reinstal in a star pattern (number them clockwise 1-6 then 1,3,5,2,4, 6).
If you have any questions, need pictures, clarification, specs, etc. Let me know. I can get the specs from the kid I sold my '98 manual to.