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Does that happen when the ignition is turned off?

Sounds like you need to inspect the harness in the area of the clutch cable. Somewhere, the insulation is compromised and making contact with the ignition and oil light wires. You really need a copy of the schematic on your work bench

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Problems in the wiring harness; possibly melted insulation exposing the inner wire and/or broken wires.
 

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This isn't so strange. You mentioned earlier that there were melted wires which you repaired. Those wires didn't melt by themselves. You've fixed the melted wires but not the short circuit that caused them to melt in the first place. It's a bummer because it isn't a swap a part and it's fixed situation, but it's still fixable.
Also, check the fuses in case someone bypassed them with a piece of wire, tin foil etc. If someone got tired of replacing fuses and didn't want to bother tracking down the problem...
 

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Discussion Starter #25
Brake switch wires were completely melted down to the wire.Took all the wires out of headlight went through each one all good.Took the sheath off the clutch control to check wires all good.Checked the front 12" of harness no bad wires.Charged battery.The solenoid clicks now still no starter turn and I also get sparks from the clutch handle and cable.I am at a loss.Do not know what to do now.
 

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Discussion Starter #26
Fuses are good.I changed the main fuse to a blade type and extended the wires from bottom of engine up to under the seat.I went to a lithium battery. Could it be a regulator-rectifier problem or the cdi?
 

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Discussion Starter #27
I am wondering if the new ignition switch is shorting out. Seems like when the clutch cable touches it and I press the start button that is when it sparks
 

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I am wondering if the new ignition switch is shorting out. Seems like when the clutch cable touches it and I press the start button that is when it sparks
Is the new ignition switch in the stock location? Is the clutch cable stock? It seems to me that if these are stock the clutch cable should be nowhere close to the ignition switch.
 

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Discussion Starter #29
Stock location.New clutch cable same as the old one.I have everything out of the headlight.Going to try with everything hanging before putting all back in the headlight
 

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Is your new ignition switch the right one? TIA ignition switches are not compatible with CDI ignition switches. You have so many variables going on it makes troubleshooting advice very hard to give.
 

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I hope you didn’t buy another ignition switch based on what I said. I hate to see people throwing money at their bike without testing suspected faulty parts first.
 

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Discussion Starter #35
Seems strange why would electric be coming out of the switch and touching the clutch cable causing sparks on that cable
 

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You should be able to unplug the starter switch, then use a wire jumpers to energize the solenoid and ignition. If the bike works normally bypassing the switch, you can prove your hypothesis about a faulty switch

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Wouldn't the solenoid click if it were a starter problem? Is it an electrical buzz? Wondering if it's a regulator/rectifier problem. They are one unit on these bikes if I'm not getting my Hondas mixed up.
 
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