In my 88 the clutch doesn't engage until the very top inch or less of travel. The rig has 160k on it and I believe its the original clutch so its probably plenty worn out but it doesn't slip at all and engages fine its just that it engages at the top of the travel. Is there any sort of adjustment on these hydraulic clutches? I only have experience adjusting manual clutches...

 

check the fluid level first, there's not any adjustment that i know of. Mine engages pretty early in the upstroke, so your pressure plate is probably worn out