Do you know for a fact that spring is the correct spring and not just one that you were able to fit?
Do you now know where the spring should go?
I do NOT know that. I looked around a local Napa and found a huge long clutch return spring in the Help section I think. I really don't know for sure it's set up correct but I know it's close as a nice member on here sent me pics of his all original 230 4spd setup so I had a pretty good idea. I haven't had a chance to mess with it this week but the more I think about it the more I think the adjustment is the issue which likely has the throw out bearing making contact where it should have the mentioned 1/2" to 1" of play that Wrenchbender Ret above here advised me of.