As you tighten the cable (remove slack from it), you will have to push the pedal less distance to disengage the driveline. It is vitally important to the life of your clutch to adjust the cable properly. I usually set it so that there is a slight amount of slack in the cable when the pedal is released completely. Too much slack, and you can run the risk of not fully disengaging the driveline between shifts and prematurely wear your synchros. Too little slack (the cable still remains tensioned when the clutch is released) and you will never get full pressure plate release and your clutch will slip wand wear out early. I would focus on the slack in the cable rather than the pedal engagement height. Checking at the bellhousing can be a help for accuracy.
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