Sounds like it's too tight. There should be a little bit of slack in the pedal with it released. I like mine to grab as high up as possible without being too tight (no play in cable). As long as there's a little play in the cable, the clutch will let out fully, so there's no slipping to worry about. Having the clutch adjusted high also allows for much faster shifts, especially when powershifting. When it's adjusted too loose (low) you won't really be able to tell if it's fully engaging when you push it in. It may be hard to shift and could cause damage to your tranny if too loose, especially when trying to shift fast.
An a slightly different topic, that confuses me and a few other people as I've seen in this thread. I've heard different theories on what's "engaged" and "disengaged" when talking about clutches. Most people say "engaged" is when you let the clutch out, and connect the motor to tranny, and "disengaged" is pushed in, disconnecting the motor from tranny. The way I was taught in school, which makes sense to me, is "engaging" the clutch would be pushing it in. The job of the clutch is to disconnect the motor from the tranny. So when you push the clutch in, you are making it do it's job, therefore "engaging" it. Basically, engaging the clutch disengages the drivetrain, and the other way around.