Clutch engage issue

Hello all,
 
First time poster here.  Got a question pertaining to my clutch. I have a 2001 Tribute DX 5 speed.
 
It is catching really close to the floor. I have no trouble changing gears or getting it into any gear. I have done the "3rd gear, rev to 3K and pop the clutch" and it stalls immediately; which tells me the clutch is still good. But again, its catching almost right before the pedal hits the floor. If I try to shift, say with the pedal halfway down, it starts to grind.
 
My question: is the clutch finished or can it be adjusted to engage at a normal setting?
 
Thank you very much in advance for your time with this. It is very much appreciated.

LG