Greg,
There should be a stop that won't allow the pedal to ever get closer to the seat...only to the stop.
The "free pedal travel" it the movement of the pedal (and associated linkage) BEFORE the throwout bearing touches the clutch release fingers (pressure plate). This 'slack', which is adjusted by you, and kept in tension by the hefty clutch return spring is there to make sure the throwout bearing isn't riding on the pressure plate. This constant turning if adjusted improperly would wear the bearing out in short order.
Provided your clutch return spring is on and in good order, you should be able to push the pedal down with your hand and feel the 3/4"--1" movement before it becomes hard as it bumps up against the pressure plate.
This is the only adjustment there is, and it's for the sake of the throwout bearing. If things don't work properly when this is adjusted to specs, it time for a clutch/pressure plate transplant.
Stuart
