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I checked everything and still have a problem.
When I release my clutch lever if it is adjusted in one direction it catches right away but stops two thirds of the way out or if adjusted in the other direction it does not catch/engage until it is about half way out. In the latter case when I put it in first gear I hear a loud clunk sound.
I took off the dobie cover and adjusted it there according to specs. I took off the tranny cover and checked out everything in there --all ok I even took the cable off completely and it is fine. What can be causing the problem?
Any suggestions appreciated.

The only thing I can think of is that the clutch cable was replaced by one that was too short. This would be causing your problems but would look like it was just fine. Or it is also possible that the PO changed handlebars and put a wrong cable on. OR ... the PO may have done this on purpose. Harley clutch-pull is something of legend... it's possible that the PO got a different cable to minimise the amount of pulling he would have to do to get the clutch in.

I would take it to the dealership and have them measure out the cable to see if it's the right one, or see if they can adjust it properly.

Thanks TechBMW

Is there anything that could happen in an accident that would affect the cable like stretch it or move something inside the cable? It slid along on the left side for about 40 feet.

I'm going to put in another cable but I'm curious. I hate to not know the cause of a problem. I like to know how things work and hopefully be able to fix them. The new cable will probably do it.