Clutch drag is a common problem. It is generally worse when the engine/clutch is cold. I would suggest shifting into nuetral to start. If the drag is excessive then you will need to tear into the clutch.
How about some background on the starting issue? Did it just fail to start one day, or did it die on you while you were riding and never started again?
It does sound like there is a compression issue as you should definately be able to feel it. A compression tester would answer the question for sure, but it would probably only confirm what you already know.
The loss of compression could be a bad head gasket, rings, or because the engine had siezed on you and the cylinder and/or piston are damaged. The only thing to do for either of those possibilities is to tear into it and do a top end rebuild.
Rod