Check clutch master cylinder and clutch pack, certainly sounds clutch related.

How old is bike? How many miles? Abused or not?

I'd be leaning towards new clutch.

When my slave went it used all the oil in the reservoir and had the effect of being unable to engage the clutch. This sounds like the opposite of that. Take clutch apart and check friction plates and steels.

Some one on here recently had a problem with the slave cylinder & it was noticed that the pin in the clutch push rod - where it fits the slave cylinder, had moved & wore a grove in the chain guard/mount - wonder if this has happened & in not letting the pushrod return.

Might be worth whiping this off & see if the clutch engages whilst on the stand - otherwise no recently replaced clutch lever?

Good result then

Eh? Doesn't make sense to me.

Hmmm,

If the bolts holding the pressure plate on came lose your clutch would slip. Maybe this is what they meant?? That has nothing to do with sprockets and chain though. And as Orpheus says the SD takes a 525 chain.

If your front sprocket had no teeth then that is your problem (and you might want to stick with driving a car rather than riding a bike). I'm not trying to be an asshole. It's just that when you ride, your life depends on a well maintained, mechanically sound bike to keep you alive. One little mechanical failure can put you on your head (possibly resulting in the worst case senario). In a car it doesn't matter (you don't fall down when something breaks due to lack of proper maintenance or neglect).

fooking dealer is an idiot. Do not run that 530 chain on the 525 sprockets!