Clutch has stopped working

sounds like shift lever adjustment problem
take it into a service center and have it properly diagnosed and a quote

Assuming you mean with the engine running, you can't go from neutral to first, I sometimes have this problem too.
I'll slowly let out the clutch just a little bit, shifting into 1st as I'm doing so, and it'll drop into gear.
Also, try shifting up into 2nd, then back down to 1st.

If you mean with the engine NOT running, then you have to rock the bike a little either forward or backwards as holding shifter down until gears line up to engage.

Older 4 speed transmissions were known for their "clunk" going into 1st gear.

However, even though you didn't give a model year, I'll assume you mean something newer than those.

If it "grabs" when going from neutral to 1st (bike wants to "jump"), it usually means the clutch push rod (under the primary cover's "Derby cover) needs adjustment, followed by the clutch cable.

As far as the leak where the cable enters the transmission, there is an "o-ring" seal that might need replacing.

A clutch fork... how hard do you ride this?

improperly adjusted clutch!

you can ride the cluthch on a bike un like a car you wont hurt it its oil lubricated constantly, sitting on the bike pull the clutch in with your left hand and click the left foot lever down in to 1st, then learn how to click it back up 1 half movement in to neutral. the neutral light will come on sfter the bike enters neutral. in first gear give the throttle on the right hand a squeeze and pull the clutch in with your left hand put foot gear selector down in to 1 st and begin to release clutch slowly. hold on as bike will engage may be jerky balance yourself! when you get moving stop! by pulling the clutch in and the hand brake as you close the throttle to stop! practice your take off many times some where safe! when you get your balance in 1st gear pick up speed and begin shifting the foot gear selector up in to 2nd gear and practice closing the throttle and breaking to a safe stop. gears are generslly 1st down 1 click 2345 and6th all up from there and neutral is 1 half a click up from 1st between 2nd gear. And dont put it in gear with the kick stand down t may stall on you

hope this helps

The transmission "neutral" position is located between 2nd and 1st gear. You say you're also getting a "false neutral" between 3rd and 2nd. Since you say you're finding both, it leads me to suspect that you are not being aggressive enough when shifting the gears. The Sportster has the best shifting transmission of all the Harley motorcycles. Since it does shift so easily, riders sometimes "soft shift" the transmission and wind up missing gearshifts. This is the most likely problem, rider error.

Now, there is the possibility that the clutch is dragging but that usually effects the transmission when upshifting, not so much downshifting. With the engine off and switch on, put the transmission in gear, hold the clutch lever in, press the starter button. If the bike tries to move forward, you need to adjust the clutch.

Ride Safe
Steve

just input , not resolving anything. but i used to have a similar issue with mine, but i had a gs 750t . it has around 20,000 on the clock. sometimes it didnt want to shift into 1st from a dead stop, i had to let out on clutch, then pull clutch again , then it went right in. the gears are so fine cut in the bikes that once they get worn, even the shift fork, it gets a little harder to get into those gears without a little coaxing. by the sounds of it (without knowing the mileage) i dont think id worry too much. especially if its shifting up and down through gears without grinding of any sort. if the clutch is ok on it (being an 03) i assume its still touchy , ull be ok

It will be hard to shift or find neutral if the clutch isn't adjusted right. check your adjustment first.

does not seem like the waterpump. is the clutch set too loose?
usually in wire based clutches, if the clutch cable is set to be too loose, or if it is frayed, and needs replacement, the bike will jump and stall.
check that.