"New" '94 MM has a clutch problem

I picked up an abused 94 MM with a 2.4 last weekend. It's a real basic model with the 5 speed and a cable actuated clutch. I spent the last couple of days cleaning it up and replacing broken or missing items like the passenger window, seat springs, tail lights, rear view mirror, dash bezel, vent cover, etc and it's starting to resemble a complete truck. The first mechanical problem is that the previous owner had just replaced the brake cable and the clutch will not release. It had been sitting for a few weeks so my first thought was that the disc had rusted to the flywheel so I started it several times in gear, both 1st and reverse. No luck. He said he had adjusted it "all the way out" after installing it but I'm not sure if he knew what he was doing. What's the correct way to adjust it?

I don't know about the 94s, but I always adjusted it until there's a little slack on top of the petal. That way you know the tob is off the pp.