Clutch/trans question

[poorboy]

Ok I finally was able to work on my truck and I got the new motor fired. It has a minor exhaust leak and I thought cool if that's all that wrong I'm stoked. Of course not. The trans will not go into gear with the truck running and the clutch in. It worked fine with the old motor. I had my daughter push the pedal and you can see the throw out bearing move and the pressure plate move away from the disc. Is that how it's suppose to work? Thanks for the help.