My soil is full of clumps of clay and I'm wondering if this is the answer. Any issues with using it?
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That sounds pretty good, and will help. Improving organic matter content of the soil is what you want to do. Peat is good because it's fluffy, and as result, has a lot of pore space. You could use straw, I suppose, or small sized bark chips, and thoroughly mix. Think fluffy soil.
Don't mess with lime unless you're sure your soil has low pH. Gypsum is good, since it'll ad Calcium, which builds soil structure a bit, but it's primarily used to treat saline soils.
Alright, sounds like I've got a plan then. Thank you so much for all your help, I really appreciate it!