Why wont my 1986 chevy go into gear?

I have a 1986 camaro and i just put a 355 into it. I had a 350 in it before with the same t-5 borgwarner transmission and it worked perfectly fine.I swapped motors and I had to put a different flywheel on the motor because It was an older style block. I made sure it was the correct tooth count and the correct clutch plate disc size 10.5 inches. i bolted the flywheel up no problem and put the motor in and then bolted the transmission up properly. Now, that the the motor is in and the will shift into gears fine when it isnt running. then when I turn the car on it seems like the clutch isnt engaging enough to let me shift. when i start the car in gear it wants to move like its not separating the flywheel enough. Its a hydraulic clutch and I bled the slave cylinder twice. the throwout bearing is in the right place. all my fluids are at good level. I dont know whats wrong. the slave cylinder is pushing the little rod maybe an inch and a half. is that too little? why is it doing that if it is the case. Please, any help would be great.