clutch cable update

[blake at clockworm.com (Blake Irvin)]

This morning before work I got under the hood again.  The actuating  
arm on the crank case will get pulled up when I depress the clutch  
pedal - what's more, it looks like the arm pulls up as far as it will  
go right now (stops just short of what looks like an oversized allen  
bolt on the crankcase).

So, I'm thinking this might be worse than I thought.  Somebody before  
mentioned that the 'push rod' for the clutch might have eaten through  
the clutch?  Does this sound correct?  Any other ideas?

thanks,
blake/