Thanks for the info. I ended up going to my local Honda dealer of all places as I have a buddy who works there and aked if they have some different types of frame sliders for me to look at and try. Tried a few different ones but found that a set from a Honda CBR125 fit great. Just had to drill...
I just purchased and picked up my 2013 FZ1 last week and its doing he exact same thing as mentioned above!! Its like the clutch is dragging and I only have 200kms on it so far. I'm planning on calling my Yamaha dealer to see what they have to say about the issue. Will keep everyone posted.