Woohoo, IT WORKED!!!! Got the clutch working again - thanks to all the good guys in this group for advice!

bbforks and L1ftmech - you were right about the clutch disk getting stuck. Last night I first tried doing laps around the parking lot in the forklift while repeatedly pumping the clutch... eventually my leg got tired, so went to the second approach -

Tied the back of the forklift to the back of a Ford full size van, blocked van tires and gave it a good yank with the forklift while pumping the clutch - ALL IT TOOK :) The clutch is free again YAEY :)

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Now tackling another thing brought up by washing - HARD STARTING. I was hoping it would go away after running it for a bit, but no luck.

First day had to crank it for about 30 seconds before it started. Yesterday gave up on cranking, had to use starting fluid each time... any clues on what it could be? Since it's starting with starting fluid, I guess it's getting spark. BTW before I washed it, it was starting easily.

It's propane and in addition to carburetor, there is some other odd stuff that's I'm not familiar with, some kind of regulator perhaps? Could there be something sensitive to water/grease/kerosene/pressure washing?

Posted a pic of distributor/carburetor/propane regulator setup here:
img[dot]photobucket[dot]com/albums/v24/djenyc/forklift/l1.jpg

Heh, this forklift really doesn't like getting washed...had a few cars like that.