it does sound like the clutch adjustment / wear is the problem… silveR6’s theory is possible if it won’t roll easily in neutral, but so is a sticky caliper, wheel bearing etc etc…
I’m back in for now, you’re so confusing Rob
When you say you ‘adjusted the clutch’ do you mean you adjusted the clutch cable and did you adjust it to the recommended free play :ermm:
Get yourself a Haynes manual and have a good read of the relevant sections.
BTW Alba if the rear wheel does not turn freely it could be due to defective drive chain/sprockets, it could also be due to many other things including defective brake parts, worn wheel bearings, worn or disintegrated cushion drive etc. From what Rob has posted part of his problem is most likely the clutch, exactly what that part of the problem is, and again it could be a number of things, can only be diagnosed correctly by dismantling the clutch. Although a replacement clutch assembly, fresh engine oil and a replacement oil filter will more than likely fix this part of the problem. But don’t tell him I told you so 
Right, I’m going to be brutally honest as sometimes thats best.
You bought a nice looking bike from a scrap yard of which you don’t know the history or even the REG…!!!
For all you know it may have spent the last 5 years standing in a garden somewhere rainy under a broken drainpipe… :crying:
From the issues you have described so far, I would suggest you are looking at a full strip-down and rebuild of all the running gear at least, to replace things that are worn/rusted/missing grease/stretched/cracked or split.
Personally I would not be doing anything (and saving all the excitement) until you verify the REG and confirm it doesn’t have a hidden history & get it registered to yourself 
yes Art, that is why i suggested starting from there. :doze:
Thanks guys.
Dont worry - I prefer brutal honesty…
Before I do any of the big tear down options you have suggested (And I understand they are most likely) I am just looking at the smaller potential fixes first.
All this whilst still not knowing the history or reg! Which brings me onto…
…I have had a response from Yamaha UK who confirms it is a 1994 / UK Bike / 11 digit Vin.
I am also waiting on response from ‘Yodi’ who can do a Vin check HPI… If that comes back with a reg and its clean I shall get into the big jobs.
Cheers