Update! I bled the clutch and it feels amazing! There was air in the system since the time I removed the Clutch Delay Valve (CDV). Since then the clutch was a little hard but I got used to it an just never got around to bleeding the clutch. After I accidentally sucked the clutch line dry (couldn't close the bleed nipple quick enough while using the mityvac), there was even more air in the system, but I got all the air out of the system last night and the clutch feels awesome.
Clutch now takes halfway up, feels softer to depress, the travel and feedback is more linear, the clutch pedal is more responsive at the top when you put your foot on the pedal (not squishy any more), and the gears take easier and the gearbox itself just feels more slick. What a great feeling, I should have done this right away.
And yes Shaun, she spins and goes sideways much better with the new diff. I suspect the diff was damaged from the start. The car feels completely different with the new diff.