The originator of this thread seems to be satisfied so I'm going to take a risk and hijack it (full power to flame shields Mr. Sulu).
My '85 K100RS requires the clutch lever to be pulled in order to start it even when the transmission is in neutral. The gear position switch appears to be functioning correctly otherwise though. Green light and gear indication are good. This is easy to live with and is only an issue when I try to start the bike when on the side stand.
So the question is, why is the starter logic not getting the status of the transmission? Is that decision determined within the instrument cluster? As it is, if my clutch plunger fails I'll be screwed.