UPDATE:

Ok so I replaced both the master and slave cylinder, bled and replaced the clutch fluid, and also changed the transmission fluid but I am still having difficulty downshifting. It is not quite as difficult as before, but still pretty tough.

Anybody else have any other ideas?

I read in another thread difficulty downshifting can be caused by a rusty input shaft as pictured here:

Anybody else experienced this? And would the input shaft be rusting on a car that is a daily driver?

 

^ and i should add the car upshifts PERFECTLY feels completely smooth on upshifts.

The strange thing is the problem ONLY occurs when trying to downshift to any gear while the car is in motion.

 

I have the same problem, i fix by heel-toe downshifting

 

^ seems like quite a hassle for a daily driver in city traffic

 

do it enough, it becomes second nature. Very simple to rev-match

 

When you upshift, the synchro is slowing the primairy shaft down.
The engine rpm's drop too (clutch in, off throttle).
A slightly dragging clutch disk will not interfere that much.
When you donwshift, the synchro has to speed-up the primairy shaft.
The engine rpm's are still dropping unless you rev match to the rmp of the lower gear.
The dragging clutch disk speeds-up the primairy shaft too and it makes downshifting easier.

If the clutch disengages properly AND the disk can move aroud a bit on a lightly greased primairy shaft spline (in the picture) it won't make a difference.

Did you bleed the slave off the trans, with the bleeder pointing upwards and the piston pushed ALL the way in?

There are 2 stages of clutch play, the first you feel is mechanical and may be adjusted to close to nothing.
The second is hydraulical and MUST be there otherwise you're riding the clutch.

The only way to get to those splines is to remove the trans.