I found this on RSC's website.. sounds like I may need to get the spacer
Do I need the spacer for my RSC to function correctly?
No, you do not need the spacer for your RSC to function correctly. The spacer is an option for those that seek a more distant engagement/disengagement point from the handlebar. Easy pull clutch levers move the engagement/disengagement point closer to the handlebar than the stock lever or any OEM replacement lever. It is also an option for those that wish to use the inner of the two cable holes on the lever to maintain ease of pull. The spacer can be used to achieve correct clutch operation when clutch plates may be slightly out of factory specs, or other factors that deter proper clutch operation may be in play.