Correct clutch gap is in thousandths (.014-.030"). Hopefully that was just a typo above....

 

Yes, a typo. a 1/4 inch gap would be impressive at the very least.

 

There is an unanswered question that comes to mind. IF there is no mechanism to turn off the clutch under hard acceleration conditions like WOT, then why would the clutch cut out when I manually open the throttle all the way? It does cut out pretty consistently.

 

It's slipping.

 

Oops, for some reason I was thinking you had a 2003 instead of a 1993....

 

Put a volt meter on the clutch coil connector and rev the motor. See if its voltage related by some chance. You might have enough power to turn on an LED, but not enough to hold in the clutch.