Clutch Plates Replacement

Hello.
1978 XS400, 9.5K - restoration project.
Searched the forums but couldn't quite find an answer to a specific question I had. I'm getting ready to replace the clutch plates and friction discs. The only thing I wasn't sure of is what gear should the motorcycle be in? Is neutral fine?
Also, any gotcha's anyone would like to share specific to the XS400 before I get started?
Thanks.

Neutral is fine.

I would stick with stock type springs. Yours are most likely are still in spec. There are alignment marks that need to be set on the outer plate and basket which the manual all has in it. Just follow the steps.

You often do not need to change the steel plates unless they have severe wear are not flat or look overheated.

There is a manual here onsite.

Thanks. I was able to find the manual. It seems that there are two versions of the manual? One of them is a single download in a dropbox titled Supplementary Service Manual. The other is located on this site and comes in three parts for download. I'm not sure what the title of this document is. But it shows lots of diagrams with parts called out. The combination of the two manuals has answered many of my questions for clutch replacement.
Thanks again.

Another couple of question as I get ready to replace the clutch plates:
1. For the clutch plates, One side is slightly rounded at the teeth (or beveled). The other side is perfectly flat. should the flat side face inside or outside?
2. For the kickstart, I read a few places on this forum that the kick start didn't work properly after clutch plates were replaced. Anything I should be aware of regarding the kickstart so I don't have trouble with it after replacing the clutch plates?
Thanks.

The rounding comes from the way the plates are stamped out, one side always ends up with sharper edges. Doesn't matter as long as you put all in the same way once you pick which way you are putting them. A lot of people put them with the rounded edge facing out, supposedly it allows the clutch to lock a little better.

The kickstart quits because the gear force path is through the clutch, meaning it is misadjusted or assembled wrong resulting in slipping. Put it together like shown in manual and adjust like said and you should be fine.

Hello again,
I just wanted to post an update to the clutch replacement project I am currently working on. I would estimate I am 90% done.
Where I am having some trouble is the clutch cable adjustment. The manual talks about two locations for adjusting the clutch cable. I attached a couple of photos of my motorcycle to help in my questions. On the left crankcase cover is the screw lock nut (item 4 in the photo) and the Phillips screw (item 3). At the clutch lever, there's the adjuster locknut (item 1) and the adjuster (item 2). I tried to adjust all of these as best I could. Currently, I can put the motorcycle in neutral, release the clutch lever and the motorcycle moves freely. I can put the motorcycle in 1st gear, release the clutch lever and the bike does not move, as expected. When the motorcycle is still in 1st gear and I press the clutch lever, I can move the bike, but not as freely as if it were in neutral. An added piece of info, I still did not put any oil in the motorcycle in case I need to remove the right side crankcase cover again. I did soak the friction plates and the discs for several hours before installation.
Questions:
1) Should I expect slight resistance in moving the motorcycle when the motorcycle is in 1st gear and I have the clutch lever pressed all the way?
2) From the photos, could you tell me if my adjustments for the clutch cable looks correct? For example, the Phillips screw is sticking out a few mm beyond the hex lock nut. Also, at the lever, the adjuster is almost out of the handle. Should it be screwed in more?
3) Finally, may someone explain how each of the numbered items in the photos work together (or separately) in adjusting the clutch and could one of these adjustments explain why I am still feeling slight resistance in moving the motorcycle when in 1st gear and clutch lever pressed all the way.

Thanks.

You will always have some slight resistance, you are having to turn more stuff and slip the clutch discs with it still in gear clutch pulled in. Before you start adjusting lower down the handlebar adjuster needs to be all the way in. It's the last thing you move and the least amount.

Hello all,
I wanted to provide further update. In summary, I deem my project to replace the clutch plates and friction discs a success. My motorcycle rides much better now, but still not perfect.
Here are a few notes for reference:
1. I placed the motorcycle in neutral before beginning
2. I focused on the kick start mechanism to make sure I do not disrupt that - nothing came loose related to the kick start and it worked fine after all the work was done
3. I marked lots of things with permanent marker to make sure I put everything back in the correct place. I did not see the "alignment arrows" that the service manual referenced. So I drew my own arrows before disassembly.
4. The issue of the motorcycle feeling stiff when in 1st gear and the clutch pressed all the way was not an issue. When I am in first gear and have the clutch pressed all the way, I don't feel the motorcycle trying to move forward. It rolls freely backwards when I am on a slight incline I feel confident that the clutch plates are not sticking like I previously thought after the work was done
5. When I removed the old clutch plates and friction discs, a lot of the cork material was loose and coming off. I concluded that these were the original and have never been replaced. I proceeded to replace the oil filter because of that, even though the filter had only 20 miles on it, but 20 miles with the old plates and discs
6. The cover gasket looked like it was in decent shape, so I kept it on there and did not replace with a new one. No leaks after the work was done
7. An issue that exists that I am willing to live with: occasionally, I find it hard to get the motorcycle back in neutral. This happens 2/5 times.
8. The clutch cable is a little stiff, but I am willing to live with that. I compare it to my 2005 Suzuki S40 with has a very smooth clutch lever feel (it's a cable clutch as well)

All in all, I am satisfied with this whole experience. I have tons of photos and videos during the work. I won't post them unless requested. There are others on this forum that posted lots of useful photos of the internals of the clutch and gears which I referenced a lot.

Thank you all for your help.