That's way too much adjustment on the rod. The nut DOES turn by hand though. The slotted side of the nut should be in towards the washer.

There should be a washer and another kind of cone-shaped washer between the fork and the nut.

- do you have the plastic bearings in the z-bar?
- is the fork clipped to the pivot in the bell
- is the fork clipped to the throwout bearing?

Is this a stock bell or scattershield?