First thing is if you tighten everything up and you pull the clutch lever does the mechanism move down by your left foot? If not, either it's not tight enough or the cable is broken.
According to the Clymer manual here is the procedure (with some of my notes from when I last did it in bold):
1. Locate the cable adjuster in the approximate center of the clutch cable
2. Loosen the adjuster locknut and turn the adjuster in fully to provide maximum play in the clutch cable
3. Turn the clutch release lever (on the engine) in its normal direction of rotation until the clutch just begins to release. The clutch is beginning to release when the lever becomes hard to move. Basically you turn it until it stops. Without some sort of leverage or pliers or something you aren't going to turn it any further by hand.
With the clutch lever in this position the gap in the lever should be directly below the rib on the bevel gear case. Depending on how stretched out the cable is, you might have to move the space toward the front of the bike a spline or two or more to get it tight enough.
4. At the clutch lever on the handlebar, loosen the clutch cable locknut just enough to permit the adjust to turn freely. Then, turn the adjuster out so that 5-6 mm clearance is present between the adjuster and locknut
5. At the adjuster in the center of the cable, turn the adjusting nut as required to remove all play in the clutch cable and then tighten the locknut
6. Last, turn the adjuster at the handlebar clutch lever until there is 2-3 mm of freeplay in the lever and then tighten the locknut.
Once you have done that, you may notice that the rear wheel turns when the bike is in gear on the center stand, even with the clutch pulled. It will turn a little...it's ok. Once you sit on it, it won't do that. You also notice if you don't have it adjusted correctly, you can let the clutch all the way out in gear and not engage. These are things I went through before finally getting it right.