Is there no internal adjustment? If I remove the cover from the trans where the hydraulic hose goes in will there not be some form of adjustment there?
Sorry, unfortunately there is no adjustment at all. The cable clutches have an adjustable length pushrod for adjustment, but the hydraulic units have a nonadjustable rod. Due to the way the system works, changing the length of the rod wouldn't accomplish anything anyway, other than perhaps cause the actuator to bottom out and actually reduce travel at the clutch.
If you have or can borrow a dial indicator, you can verify that your system is working as designed by measuring the actual travel at the pushrod. You should have
at least 0.065 inch (1.65 mm) travel at the pushrod when operating the lever from fully engaged to fully released (against the grip). That is the minimum spec, most will have significantly more travel.
Some folks have had issues that were traced to a faulty actuator (internally bypassing, resulting in insufficient travel). The dealer can replace or rebuild the actuator if that is the problem. It is also possible to get air trapped at the banjo fitting for the fluid line at the master cylinder. Bleeding just at the fitting on the release cover won't eliminate air trapped at that fitting, you would need to carefully loosen the banjo fitting slightly to bleed it (had to do that on my bike). Just be careful to wrap a rag around the fitting and protect the paint from the DOT4 fluid.
If the clutch doesn't release fully but the master cylinder and actuator check out OK, and all air is definitely purged from the system, then you may have to go back to a smaller diameter grip.
Jerry