Your throw out bearing is the problem.
Clutch drag is when the clutch pedal is fully depressed and the clutch is still partially engaged. When the clutch pedal is released or in the up position the engine is connected to the transmission input shaft. When the pedal is depressed or in the down position the engine is disconnected completely from the transmission. When the clutch drags it is still partially attached to the engine. A dragging clutch can cause a glazed flywheel and premature failure of the clutch. It will also cause the syncros to work twice as hard to slow down or speed up a gear inside the transmission when shifting. Basically syncros will wear out faster than normal and may not work properly depending on how bad the clutch drag is.
you cant edit: In order to start any manual transmission car, the clutch must be fully depressed.
Whenever a clutch pedal is depressed entirely, the car engine is not connected to the drivetrain, so any fuel being used by the engine is being wasted. When a clutch is partially pushed in (engaged), the clutch plates tend to slip, and so part of the engine's power turns into heat (due to friction between the slipping plates) rather than driving the wheels. In either case, only when the clutch is not being pressed at all is all of the engine's power fully transmitted to the driving wheels. So any time the clutch is being used, some engine power is being not getting to the driving wheels, which wastes fuel.
how long ago was the clutch fitted , what sort of noise
The normal process for putting a manual car in neutral is to first completely depress the clutch. After the clutch is fully depressed then it is safe to shift the gear stick into neutral.
There is a switch on the clutch that won't let the car start unless the clutch pedal is fully depressed. You can turn the key but the starter won't engage. Something stuck under the clutch pedal (matt, etc...) will do it or if someone kicked the switch or possibly the switch has died. You could use a jumper wire to bypass the switch if you had to or just replace the switch.
This answer is based on experience with my aunt's ~1995 Toyota pickup, but it should apply to the Camry, too. I imagine her problem was similar to yours. I had set out to bypass the switch, but ultimately did not have to (read on). Look for the switch behind the clutch pedal. When the clutch is depressed, the switch is engaged when the arm of the clutch pedal presses a button on the switch assembely. Although I am sure that you could bypass the switch, you probably don't need to. On the truck I was working on, the problem was that the button was not fully depressed when the clutch was depressed. You can test whether the switch is working by pushing the button and starting the car. If it works, you can make sure that the switch button gets fully pressed in when the clutch is depressed. The switch is mounted on a piece of sheet metal; using an adjustable wrench or pliers, bend the switch assembly toward the rear of the car. Alternatively, you could shim the button by glueing a piece of plastic to the end of the button. if none of that works, unplug that switch and put a jumper between the 2 wires that go to it.
The neutral safety switch on any standard transmission is located behind the clutch pedal arm, and activated when the clutch pedal is fully depressed. the neutral safety switch is located behind the clutch pedal arm in any standard tranny car that has one, it is activated by fully depressing the clutch.
The clutch pedal must be fully depressed ... could be the switch that senses travel for that pedal needs to be replaced or re-aligned.
Open bleeder on the clutch slave cylinder and bleed the system. Follow the line from the clutch master cylinder reservoir to the slave cylinder. There you will find the bleeder valve on the slav cylinder. Follow this procedure to properly bleed the hydraulic clutch which is similar to bleeding brakes. 1) Top off the clutch master cylinder reservoir. 2) Put a clear plastic tube on the bleeder nipple and submerge the end of the tube in a jar with some clutch hydraulic fluid. 3) Slowly depress the clutch pedal. 4) SLIGHTLY loosen the bleeder nipple. 5) While fluid is traveling through the tube, tighten the bleeder BEFORE the pedal is fully depressed. 6) Release pedal. Repeat procedure until you are certain: A) No bubbles appear in the fluid stream. B) The bleeder was opened after the clutch pedal started depressing and was closed before the pedal reached the bottom. C) The master cylinder reservoir never uncovered the ports in the bottom. Make sure the slave cylinder is tightly fastened to the transmission case and does not move when the clutch pedal is depressed. Look for threaded adjustment rods in the slave cylinder and clutch pedal linkages that can be used to insure the clutch is fully released BEFORE the clutch pedal is fully depressed.
If the a/c will not come on you need to check the a/c clutch relay and the following can cause the a/c to shut off..... When the accelerator pedal is fully depressed. When cranking the engine. At high engine speeds. When the engine coolant temperature becomes excessively high. When operating Power Steering during low engine speed or low vehicle speed. When engine speed is excessively low. When refrigerant pressure is excessively low or high.