Clutch problem 97 GSX-R600

Clutch experts please help.

When I reach a stop such as a stop light, I cannot get into neutral. The shift lever completely locks up. A few times while riding I wasn't able to shift from first to second for the same reason. Once I turn off the ignition, I am able to shift into neutral. Also I have way too much play on the clutch lever, about 1".

I assume the clutch assembly is too tight which won't allow the clutch to disengage. I am assuming this because once the ignition is off there is no engagement which allows me to shift into neutral.

Do I need to loosen the nut on the front side of the clutch assembly? Also, how much play should there be on the clutch lever and will that help the problem?

By the way, I had the pressure plate replaced at a motorcycle shop about 2 months ago but this problem just started.

Thanks everyone.