10-09-12, 02:00 PM
Try adjusting it at the bottom end. Pop the plastic bung out of the sprocket cover and there's a screw/locknut arrangement in there. If you slacken it off a bit there that should move the bite point so the lever is closer to the bar without making the lever sloppy because the return spring isn't under tension (which, I guess, is probably why you adjusted the cable slack).