Yep, it's clutch drag. Here's how I adjusted mine. On the first ride home from the dealers I noticed some drag at low speed and knew right off what it was. So, after it cooled off I went out and loosened the adjuster and lock nut, and loosened the cable to the point it was waaaaay sloppy.
I then put my finger on the rotating arm(where the cable mates with the arm) and gave it a push against the internal spring; it moved about 5/16" to 3/8" before meeting plate pressure. While maintaining light pressure on the arm with my finger I ran the adjuster nut back up to where it was holding the tension, and then let the arm go. At this point the arm pulled the slack out of the cable, and I measured the gap at the lever, where it needed about half a turn on the adjuster nut to put the clutch play just perfecto. NOTE: When tightening the locking nut on the clutch cable keep a sharp eye on the threaded tube so it doesn't 'adjust itself'- it will go out of adjustment just tightening it up. Loctite isn't required.
After that it just snicks into gear(the British version of 'snick' is more like 'crunch/pow'). First and second gear are rather low ratio, and that is one of the reasons it makes more noise, proper adjustment lessening it.
It's good advice to downshift into first at lower speeds to keep from breaking a dog or other boo boo, but it won't disappear-Ah, olde schoole!