Hi Bass,
Well all I can say is throw that clutch out, it's never going to work correctly for you. It's either a flogged out original that's been butchered or it's a 3/4 that's been crudely modified down to fit a 5/8 shaft.
Honestly don't even try to salvage it as they are a disposable commodity. Once you get a new clutch half and a thrust pad we can work on getting it going properly.
Also before you do this you'll have to remove the engine and while you are doing that can you please take some good close up shots of the rails where the engine bolts down on to. This will give me a better picture of what else we are up against.
Cheers for now,
BB