With this in mind, I set mine up this way.. it works perfectly. I also used vac line as a sleeve for a little protection.
First removed the slave cylinder from the bike and position it as low as possible. Then pop off the plastic cap, and push up on the rod to expose the piston. Do this over a pail or plastic tub as some fluid is going to escape. This is what you want, so dont worry.
Next, pop off the master cyl cover and add fluid to the top. It will drain fast enough to carry along any air in the line down to the slave cyl, then bubble up out the top in to your pail. Keep the master full as it drains quickly. DO NOT PUMP IT! Gravity will do all the work. In this photo, it just filled it, and picked up the camera. Yea, it drains quickly!!!! Refill it 3 - 4 times
Cohesion will allow the slave to overfill if it is held plumb.. Once you are sure that no air remains in the system, carefully push the piston back in untill flush.
At this point you can put the plastic cap back on. LIGHTLY squeeze the clutch handle and feel the instant resistance the plastic cap provides. It should have ZERO sponginess to its feel. DO NOT SQUEEZE HARD AND BLOW THE CAP OFF!!
Gently pull the rod out and reinstall the slave cyl carefully. I checked the throw of slave cyl and it started at 15.7mm and ended at 5.5mm, so it's about 10.2mm. This is about the same as the stock cable throw.Your numbers will be a little diffrent as the thickness of your plates and discs are different, but the overall throw number should be the same. This is with a few turns of the small red adjusting screw at the clutch lever. If this screw is all the way in, the throw is almost 12m, but the lever is pretty far out.
With this set up I can easily turn the tire by hand, in gear, with the clutch pulled in. I can continue to rotate the tire until the clutch lever is released about 50%. The feel is very nice and smooth.
All of this is with no additional spacers. I sometimes see guys adding spacers under the slave cylinder to try to increase the throw... DONT DO THIS!!! Getting ALL the air out is the key. Magura isnt going to supply instructions on bleeding it by letting it drip all over the place, but this sems to work very well.
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almost broke my arm on a tiny hill because of it and it completly crippled my riding ability, because i dont have FULL control of the clutch