What is wrong with my 1998 ford courier clutch not engaging?

The clutch is not adjustable it is fully hydraulic. That means it is self adjusting, if the clutch pedal engages high on the pedal and the clutch is hard to push you need a new clutch plate and pressure plate.

Your clutch disc may be worn out, when the disc wears completely down the pressure plate goes over center and that causes the clutch to slightly engage when the pedal is depressed and you grind gears, most clutches last about 75000 miles.

If it's hydraulic you replace it. If old style at the bell housing

check your clutch for a break springs

the automatic clutch adjuster mechanism at the top of the pedal inside the cab is my first suspect before the clutch itself

i think you just need a new master cylinder thats all not a big job to change it ,also try squirting the spigot bearing carrier with some engine oil if you get it onto the shaft as the slave cylinder is inside the bell housing on this model andf it could just be that the thrust bearing is sticking to the housing due to wet conditions and dust and dirt inside the bell housing

A high clutch pedal is good.
There should only be about a half inch of pedal freeplay, before you start to feel resistance.
So the clutch should not engage until it is almost fully released, near the top.
The makes shifting the easiest.

If the shifting is difficult when cold, then put the transmission in neutral and let the clutch out when you warm up the engine.
That will warm up the transmission oil.

Of course you could also check the transmission oil level and change it.
But your question makes me believe you may need more experience on a stick shift. Make sure you do the H pattern carefully, and do not get lazy and turn it into an X pattern.

YOU DO NEED A NEW DISC AND MOST LIKELY A MASTER AND SLAVE HYDRAULIC CLUTCH CYLINDERS, THE STICKING MAY BE DUE TO OVER TRAVEL DUE TO THE WORN OUT DISK.

Need to have it check could be clutch master cylinder or slave cylinder or hose from clutch master cylinder to slave cylinder.check brake fluid at clutch master cylinder sit next to brake master cylinder if empty could have a leak. fill and pump peddle and look for leak.