I just replaced my clutch (New plates, clutch drum and springs) last week and according to the specification for the spring screws they are to be torqued to 3.7 ft/lbs. Problem is I can’t find any torque wrenches that go that low. And when I set them to around 5 ft/lbs the clutch doesn’t disengage in 1st gear and it shifts very hard.

Anyone have any suggestions on how to torque these or what I am missing

Something else is wrong.
Never used t wrench and no problemos.

something wrong for a sure!
torque setting for such screws should not change the spirngs pre-load.
Whether the clutch doesn't disengage, there might be various other problem:
discs have to wait for a rodage;
the hydraulic piston can't work enough;
there's something between the discs (grains, dust, etc):

I agree with both above...
the screw torque does not effect the spring tension...and it should not effect free play either.
If everything elese is in order, I think you'll find the reason for the rough changes is purely the clutch is dragging.

Often plates will drag when they're new because the surface is a bit rough and of course the friction pads are at their thickest...

If you only replaced the friction plates (and assuming these are OK) the old steel plates might be warped. If the old clutch was cooked this is quite likely.

The problem might go away as the plates wear in a bit...or it will be one of these:
the plates are tight in the basket and some plates are still dragging a bit
the clutch pack free play is insufficient
the throw from the slave cylinder is reduced - possible leak down or air in system
components in the clutch throw assy have worn - reducing free play

how far do you have to pull the clutch lever in before the clutch will partially disengage so you can sit still in gear?

Thanks for the feed back:

I did replace all the plates and disks. It seems that the problem is in the clutch hydraulic piston not getting enough travel as it started acting up before I replaced the clutch. I bled the clutch line from the master to slave and I see no air in the line so the next thing I will check is the slave and replace old lines with new SS ones.

Off with the skin one more time.

first thing I'd try is to clean up the slave cylinder...
these have a crappy piston seal system and any scoring will let the pressure drop.
if you have been losing hydralic fluid you can bet it will be the slave.
when you dissassemble check for signs of leakage / weeping.
if the slave doesn't look wet it might be the master cylinder.

the hose shouldn't make much difference to the clutch

clean up bore axis scoring with 800Gr wet & dry in a radial pattern - or a hone if available.
I've done this on my 900SS (same slave system) when it was leaking and didn't even need new seals...it won't last forever but neither do the new ones.

if money's no object, spare no expense...lol
do the lot first time...hose, seals, cylinders...