JB, I agree with you on both counts! I'll begin to do research on what it's like to pull the gearbox from an S1 or S2 on the forums and prepare myself. Considering it'll be a big job I may as well change out all the hoses and water pump like I was planning on at the same time. I was also thinking of an RB aluminum swirl pot and that may be a good time for that too. I think the last thing I may do is check the continuity of the wires with a multi-meter just to make sure the harness doesn't have a break or bad connection somewhere.
Gavin, yes to all 3; the clutch pedal moves freely when push or pulled to the extremes of its throw, the cable moves as it should with the pedal and I did check and clean and lube the cable with some dry lube (PTFE) spray. The cable is now properly located in both abutments and the problem of the pedal not returning has reared its ugly head again, I managed to drive the car around for a couple days and the pedal got progressively worse until it stopped returning again. I have yet to stick a breaker bar on the arm and try to move it but if i'm able in the near future I'll try and make that happen.
The interesting thing is that when the pedal is depressed, the clutch is disengaged and the car is in neutral. I was able to give the car some gas and then pull slowly the clutch pedal back with my toes and the car would then roll in gear as normal. Maybe my pressure plate springs have failed? Considering the clutch is quite old I think I'll replace all the components on principle to move forward with a a clean slate. A new pressure plate, clutch disc, release bearing, cable and a freshly surfaced flywheel should cover all the bases on a clutch replacement.