>>The lever arm has ab
>>The lever arm has about an inch of free movement up and down. In the down position it pushes the throw-out bearing against the clutch.<<
Correct, these are self-adjusting thru PP/Rod Pressure against the Slave Piston, pushing the piston farther in as wear occurs.
>>Do I release the hydraulic pressure, reposition the shaft at 90 degrees to the slave cylinder and then re-fill the hydraulic unit so the "rest" position is now where the fork shaft arm is 90 degrees to the slave cylinder<<
Correct, the rod is supposed to push the piston into the slave housing because what releses the discs is the movement of the arm caused by piston travel. When you release the peddle the pressure (fluid) flows back into the resevore becuase it's pushed by the PP thru the lever arm.
The hydraulics are a simple displacement type, push the peddle fluid travels one direction, let off the peddle the fluid is pushed back.
Does this help ?