A big thanks for all the responses. A bit disappointing though that this is not an isolated issue.
 
JP - The cable is mounted correctly on the top of the clutch peddle as shown in the pictures. The clutch peddle was jammed in the fully "up" position meaning the position that would leave the clutch fully engaged.
 
accapmad - The bag was not sealed as it just clips together at the top so no able to confirm original packed item was inside so I removed the clutch cable to check the length. It measured 1 metre exactly so looks like its the correct cable (1003mm). 
 
The only thing I didn't check before removing the cable was its fitment to the firewall. I'll refit the clutch cable again and check the firewall fitment to see if this makes a difference.
 
  

I get all my clutch cables from here.
 
https://www.flexibledrive.com.au/products/02/clutch.php
 
Made locally in Kensington, Victoria.
 
Never had a problem with any of there cables.

I don't think QCC1062 (100cm) is long enough for an Aus RS2000.
I bought QCC1010 (123cm) for plenty of length, but haven't fitted yet.

Hi Noono. 
 
You shouldn't have any problems with your cable. I'm guessing I'll need to get mine modified. Also wasn't happy that the speedo cable I bought didn't have the grommet for the firewall. It'll probably be too short as well.

On the clutch Cable at the firewall, where there is the big stopper, is that meant to slide inside the pipe on the firewall, or is there a spacer which goes with it? I made up a spacer but wondered if that is correct?

Damn! I should have checked my clutch cable back when this thread was active. I bought one from Burton's too, and just trying to fit it now. It is too short as others have found.  Sigh.

Noono
I don't think QCC1062 (100cm) is long enough for an Aus RS2000.
I bought QCC1010 (123cm) for plenty of length, but haven't fitted yet.

Plan to do so any time soon?  The QCC1148 might be a good choice too at 110cm.

I ended up getting my clutch cable lengthened to about 104cm. Fits perfect now.

I thought about this for a bit yesterday, and the problem isn't the overall length, but how much longer the inner is over the outer. A few extra cms to the inner cable is all it would take to fit properly. Who modified yours 2Mk2?

A few points bear in mind my expertise is with Capris not Escorts.  OK the UK delivered RS2000 had an alloy bellhousing ours was the stock cast iron one.  Check your Burtons/QH listings to see what they list for the MK2 1600 Manual as this was the gearbox we got.
 
Also just looking at your first photo, both adjusting nuts are on the engine side.  What about putting the fat nut on the clutch fork side and trimming down the plastic bush.
 
As I say Im not an escort man but is there any merit in anything mentioned above?