So, after a couple thousand miles on a brand new clutch kit and flywheel (and cable) I decided to adjust it today. The car would previosuly shudder in first a bit...and during compression braking, although I wasn't going fast enough for the need to rev match.

 

I now have it adjusted so its better although I still get some slight shudder during compresion braking, sometimes. I can completely strat the car from a dead stop on flat ground in first w/o even touching the gas (idles normal @ 700ish), I even got 2nd to go, but it needed just a smidge of gas - In both circumsrtances I was fineesing the clutch. I think I could have gotten second to continue to roll, but too afraid. It did stall in 2nd when I came to a stop w/o putting the clutch in. The clutch catches IMO close to the floor (but i am used to the old feel) and there seems to be noticeable free play at the top in the pedal range (again compared to the old feel). 3rd gear starts are tough but I can get it. I can still get through all the gears fine. I'm I at optimal setting or should I back it up a little??....or just get a new new clutch kit to save the new $350 flywheel??

there should be a good quarter inch of free play at the cable end when adjusted. the settings you have now, if they match that, are fine. it is my guess that your clutch is just fine at this point, and I can see no reason to replace it at this stage.