Ok, you got a 10 tooth clutch sprocket (china clutch) and a #41 chain. Next time you buy chain buy the #420 chain . Take the washer off the front that you have on the crankshaft. You want the clutch to be able to FLOAT on the crankshaft. Rear sprockets NEVER runs true and since there is more chain wrapped around the rear sprocket it dictates where the clutch will be on the crankshaft so just let it float. YOU never want to fix the clutch to the crankshaft with set screws that is why it says on the donut of a Max-Torque not to use them but use a bolt and washer. But who ever reads instruction, certainly no man ever does. You put some spacer washers on the crank and that is part of your problem. If the clutch is the same length then get some flat washers 11/16 OD with a 5/16 ID and thickness is normally .060 , put these under your flat washer on the end of the crank. These are to extend the crankshaft length so you get some float.
Normal crankshafts on American engines are 2.297" long, a Max-Torque clutch is 2.220 in length which tells you there is .070 float built into the clutch. This float is to give some play to help in alignment. Another thing to do when you cannot get the clutch to move in further towards the engine is take the snap ring off and pop off the drum and sprocket and take the sleeve of the clutch to a belt sander and take off all the material down to the inside edge of the snap ring. Since you are holding the clutch on with a bolt and washer so you really don't need the snap ring. The now 2 piece clutch has no where to go and you have just gained almost .100 in float. De3finitely will help in getting good alignment when you are fighting for an 1/8".
We do this in racing situation like on a 120 snowmobile where the clutch is inboard mounted and your gearing is correct but you want to get more slip so you can just pull out the shoe assembly without having to break a set up and put in a different shoe assembly with either a higher engagement or lower engagement depending on what you need. With six different springs and two different shoe styles in the "SS" clutch you can dial it in to what you need for engagement. You can mix shoe styles as long as you do it evenly--light /heavy, light/heavy, light/heavy.
This site is for education and that is all I try and do.