Jimmy,
The bike is a 96, yes? Has it ever had a clutch before?
I agree with Taffy that it very well could be the inner drum, but wait there's more. On the older Berg's there is an adjustment in the center of the pressure plate. This adjustment set's the correct relationship between the clutch push rod and the lift mechanism on the motor. This setting is crucial to get the clutch to work right. On my 94 & 1/2 501 I ended up going to the 97 pressure plate as it was much stiffer, and 350 springs. The stock 501 springs were so stiff that it was exaserbating the problem of the pressure plate flexing when it was lifted for dis-engagement.
So, the first thing I would do if I was you would be to dis-assemble the clutch. Clean all the plates thoroughly and measure them, also check as to whether or not the steel plates are warped. Check the inner drum for heavy grooving, if the grooves are not too bad they can be smoothed out with some emery paper. But hey, if you've got the bucks, replace the inner drum. Also, check the throw out bearing that the push rod rides on, and the push rod itself for wear. If in doubt, measure it against a new one if possible. Pull the lift mechanism out of the motor and check it for play too. You can only pull the lift mechanism when the push rod is out.
Then re-assemble the clutch and check the amount of play in relationship with the lift mechanism. When adjusted properly the lift mechanism should have just a little bit of play before it attempts to lift the pressure plate. I believe that the pre 97's used a nut with an adjustment screw in the middle that I think was held in place with a cotter pin. I know the 97 used shims that went between the rod and the throw out bearing. I'm a little vague on that part of it, but the important part is to get that measurement right or it will not lift the pressure plate far enough. You'll see what I mean when you take it apart, it's a pretty simple design.
And as far as the recluse clutch goes......... I don't know anyone who has one. However, a local KTM shop does not reccomend them as they put allot strain on the trans. Apparently, this particular dealer has repaired some transmissions that were in bikes with the recluse or similar clutches.
And as far as the ATF goes. It is the only lubricant in the transfer case on my F350 4x4. Which means that it is lubricating the out put shaft bearings on a vehicle that is makes about 625 foot pounds of torque, with 300 BHP. So it can handle some big loads, but only in the right instances. It IS super high detergent, I, as well as the United States Armed services use ATF in the fuel tanks of diesel engines to clean the injectors et. al. Basically ATF is 5W, or 5 Winters. The W has nothing to do with weight, and everything to do with the flow properties at very cold temps. I'm pretty sure it has roughly the same flash point as other motor oils, so I don't see why one could not put in ATF and run the motor, AT IDLE until warm and then drain it to help clean out a motor. But the best way to keep a motor gum free is to change the oil often. What I have done in the past is when I had an exceptionally hard race, with lot's of clutch abuse, is to warm the motor, drain used oil, refill motor with fresh oil. Start bike and ride around easy for about 10 minutes and drain. Repeat.
This usually gets most of the residue out of the motor that settled out of the oil. Another thing on your set up would be to be sure and wipe out the area of the side case that goes over the clutch as this is where the clutch debris gets spun onto.
Man, I've got arm pump from typing this!!! Any questions, drop me a line.