Spacer on bolting pressure plate on

You're likely going to burn that clutch disc up pretty quick with the washers in there. All you've done is induce slippage so that you can get it in and out of gear. When you release the pedal, you're not allowing the pressure plate to fully clamp the disc with those washers in there. Slippage creates friction, which creates heat, which creates shortened clutch life. There is something wrong with your fork or hydraulics or mismatched pressure plate to disc. Take those washers out, reinstall, and look for a problem elsewhere.

Are you sure the disc is facing the right way?
Did you use shouldered bolts on the pressure plate?
Let's see your fork.
What throwout bearing did you use?
You say less than 1" travel on the slave; that is not enough for a hydraulic clutch to disengage the pressure plate. Your free play alone should be 3/4". You need about 1" to 1-1/4" travel altogether with freeplay and disengagement. You likely still have air trapped in the line.
Did you bench bleed the master?
Did you bleed out the slave using the pedal, then disconnect the slave from the fork and fully compress the slave manually?
Is the air bleed on the slave pointed straight up?

 

What transmission are you running? I've run into a situation with the thicker flywheel of the Jeep 225 V-6 that the splines on the input shaft terminate too early on some transmissions (conversions) so the disc can't slide back far enough on the splines to desengage from the flywheel.

 

Everything is 225 v6 parts from the input shaft on the tranny to the flywheel. The on thing that I doesn't match up is the shoulder bolts. I didn't use them because when I pulled it out of a jeepster it didn't have shoulder bolts it just had regular bolts. The master and slave are bled out correctly an that has more than enough throw. That was one thing i re-did right away, I just forgot to mention it.
When I put the clutch (made sure it was on the right way and re-check that) and pressure plate on, the fingers that the throw-out bearing go on moved about 3/4+ of an inch when I put it together. When I added the washers it was about 1/2 inch or so. (I didn't exactly measure but you get the idea)
That is what I did and it "worked."

 

x2 on what Warloch said, should be 40 ft-lbs.

Something is not right if you have to keep running washers to get your clutch to work.