You should adjust the cable so the lever moves just a little bit before you feel tension on the clutch; maybe a gap at the pivot end of the lever (wide end of the wedge-shaped gap) of no more than about 1/16", so the end of the lever just moves about 1/2" or so. The friction zone will fall where it may, based on the geometry of the release system, but the clutch should be fully disengaged before the lever hits the grip. Engine off, it should roll in gear with the lever touching the grip.