My '81 KZ 750 LTD "over revs" occasionally when I give it
the gas, and it takes a second or two for the bike to
speed up to catch up with the engine

I'm thinking the clutch may be slipping and needs adjustment
(I have looked at the plates fairly recently and think they are ok)

When I adjust the set screw on the lower left of the bike, should
I tighten (clockwise) or loosen (counter-clockwise)?

Or - - -should I be considering some other reason for this problem?

 

dave- any new synthetic oil changes? true, your manual would cover the clutch adjustments. sometimes I had to lap the plates on rough surfaces in order to get the dang things to set up right as well.