2000 4x4 4.7l 5sp.
I had a new slave cylinder put in about 10 months ago after my transfer case exploded and the drive shaft took out the clutch slave. Had a cheap NAPA one put on. Then last week the slave self destructed (the line unclipped itself from the slave - it's a closed system I don't get why they attach the line with that cheezy clip). So I had a shop replace the system again, this time with a MOPAR system. They replaced the whole system, master/line/slave. (Charged me $395 for the part and 1.5 hours labour - is that reasonable?)
Before the slave cylinder blew the clutch felt completely normal. Now the engagement point is very close to the pedal's highest point (have to release the pedal most of the way from the floor before clutch engages). Why the difference after the hydraulic swap? Is there any adjustment in the pedal/system to make my clutch feel normal again? And the shop says that is a sign of a wearing clutch, any truth to that?

 

The shop is correct. You can't adjust the pedal. If it wasn't engaging that high before it shouldn't be now but there is always the chance the clutch is worn.

There are a few things to check however.

1. The slave cylinder pushrod isn't seated correctly in the release lever.
2. Make sure the clutch master and slave cylinders are mounted properly, bolts tight.
3. It could be a defective master or slave.
4. The release lever is damaged/not installed correctly.

Hope it helps.

 

There may have been a little bit of air left in the system after replacing the slave cylinder. That would cause the slave cylinder's stroke to be shorter, and make the clutch engage closer to the floor. When they installed the factory-bled system, the stroke went back to normal and the pedal travel did, too. I know I'm doing a terrible job of explaining it. Does what I said make any sense?

The hydraulic clutch system should compensate for any clutch wear, but the pedal travel still changes a little over the life of the clutch due to changes in release fork angle, etc.