I have been shagging about with the adjustment on my clutch ever since I got the car - I starting playing with it in about 2006/7 and that's when the trouble started.
I've been through about 5-6 clutch cables and probably a similar number of the horseshoe shaped clutch cable clips (these were fitted to most XC/XE manual trans cars and used to be about $6...)
The reason for adjusting was that the low-rev gear change was not as smooth as I'd like, and the high-rev was much smoother but you couldn't change gear quickly - too fast a movement and it would baulk.
I have the same experience with the T-56 behind my 03 engine, and I'm wondering if there is a spec/method to adjustment that I'm missing.
Talking to the guys on US forums, the thrust bearing should be permanently engaged and therefore little-to-none freeplay in the pedal is probably the case, however I'm not convinced and hoping to find a spec for it that will be unique to the Australian cars as they had a completely different cable/pedalbox setup - anyone?