help, major clutch problems

I have a 89 gt that is decently modded, my problem is is i just replaced the transmission with a used one, and put in a new spec racing clutch, and now my clutch cable just keeps getting more and more tight and whenever i back up or am in traffic clutching it i can smell burning clutch sometime worse than others, i loosened the cable at the bell housing to where i could wiggle it back and forth an 1/8-1/4 of an inch and now 50 miles later it is very tight, do i need a new clutch cable? also at low speeds like starting from first or reverse it chatters a little sometimes it doesn't any help would be much appreciated i just cant stand the smell of a burning $250 clutch thanks