Bill, I had a discussion with Novak about this since I still have to set up my clutch slave. Here's what they say on their website:
"Our research shows that a typical GM clutch pressure plate, whether three-finger style or diaphram, 10-1/2" or 11" generally requires 0.550" of travel to release the clutch disc."
Eric at Novak told me you want .55" plus .120" for disc clearance. This is at the fingers. Then he said you want 10-15% margin on that. So the total the pressure plate fingers need to move is .737-.770". That may be a little conservative as I found out.
Now you need to multiply that by the fork ratio which they say is 2.17 to 1 so you get 1.67" needed at the fork. I mentioned that my Wilwood MC only has 1.4" of travel and I was worried about that not being enough. He replied with this:
"When we set up our 3/4" slave with a 3/4" master with the GM hydraulic release arm (2:1) that comes with our kit, it usually nails it every time, with an average of 25% margin travel. I suspect the difference here is that our tests used virgin clutch kits that had not been burned in, and there are quite a few feathers on new friction discs. I wonder if we should retest with a broken-in clutch and see if we come in closer to .475" to .500" of travel for release."
If I were you I'd go ahead and try the rod in the upper hole and see how it works. 1" higher seems like a lot to me, but maybe you could raise it a little and still have enough travel. If that lever is 4" long and you raise the hole .4" you should decrease the pedal effort by 10%. You still might have enough travel.