Wheel tough to spin with disengaged clutch!

Hello, I have a 1981 Yamaha XJ650 Maxim I'm restoring.
I was making sure the clutch works, but I'm experiencing some issues.
When I pull the clutch in, it shifts fine.
When I'm in neutral, the wheel spins freely.

Although when I put it in gear and pull on the clutch, it spins with a ton of resistance. It's very hard to spin the wheel.

I tried adjusting the clutch so it disengages earlier, but it doesn't seem to work.

Any thoughts or suggestions? I've been rebuilding this bike for months now!
Also, I'm in Sacramento, CA.

 

That's normal. Its because of the oil on the clutch, plus the gearing in the transmission.
As you turn the transmission with the rear wheel the drag is trying to spin the engine as well.

 

you don't have 50HP

 

I find that odd. I thought the rear wheel would spin if the clutch was disengaged.
While your riding, would you decrease in speed when the clutch is pulles in?

 

depends if your going up or down hill................don't mind me, i'm a jagoff
there's a lot of gears, seals and bearings between the wheel and clutch. if the clutch were out on the floor, it still wouldn't just spin but the clutch is the majority of it. that's why the bike always clunks when it goes in gear, it's overcoming all those resistances

 

Remember that the clutch is running in oil, and there is only a very small amount of space between the plates when the clutch lever is actuated

The force that you apply by hand is far, far less than what's applied as the bike is coasting (even at a walking pace), so you can't overcome the static friction between the oil and the clutch plates as easily as the engine can. (Have you ever had a ceramic coaster stick to a wet glass? It's kind of like that).

You're also putting force into the outgoing end of the system, and working against all of the gearing and other stuff that Polock mentioned.