Props to andrewed1 for helping me troubleshoot, he has a similar thread which may be of use in this operation:
Here is my struggle in which i almost threw my bike off a cliff:
Doing my research from this post, I decided to use the Compufire R/R:
Do yourself a favor and do the damn continuity test!!! Each of the pins from the stator should show continuity (resistance) and no continuity to ground.
Okay on to the install:
I started by draining the oil. You should do this whether the bike is leaned over or on stands (admit it, you need to do an oil change anyway):
You will also have to remove the tank to access and unclip the wiring to the stator. The white 2 pin is to the pulse generator from the bike, and the black 3 pin is to the stator from the R/R. Unclip them both
Now remove the stator cover including the stator. keep in mind that there are magnets involved here (how do they work??) and some guiding pins, so you will feel it on the way out. Dont lose the pins, just put them back. Same goes for the starter gear if it slips out, just put it back. dont rotate anything.
Here is the old stator:
To remove the stator undo the 3 bolts holding in the unit, the two bolts holding on the pulse generator, and the one bolt holding on the wire cover.
Installation is the reverse. Be careful not to put stress on the wires, and to tuck the new wires under the cover so they do not get hit while in operation. Also, you will notice the stator is oriented such that the wires feed through the gap in the mounting on the cover.
A quick note: Here is the new stator i bought. I removed some zip ties that i thought were packaging. they were not packaging and i ended up creating a continuity to ground... FML
I had to replace it... again. I recommend using one with insulation so it holds everything in place:
this would also be a good opportunity to put in a new connection if you want. again, i used the connection recommended by the link above. here is the amazon link for you lazy people:http://www.amazon.com/gp/product/B005F9BCB2?psc=1&redirect=true&ref_=oh_aui_detailpage_o08_s00
Now it is time to put everything back together. Try to cover the internals while you scrape off the residual crap from the old gasket. you want to get this as clean as possible, but dont scratch the surface. there are plastic razors that work okay, but i ended up using a metal scraper anyhow. BE CAREFUL.
Now use a fresh gasket (http://www.amazon.com/gp/product/B00JDOUKK4?psc=1&redirect=true&ref_=oh_aui_detailpage_o01_s00) and lightly coat both sides with RTV. I used Red, but i hear Black is better. I havent had a problem so far. Be fairly quick about it, the RTV will set in less than an hour.
Put everything back together, you will feel the magnets again, and make sure you line up with the guide pins. Dont forget the hose mount thing! Tighten bolts in a star-ish pattern like you would a car tire so you get even pressure.
Wait an hour to put oil in, and 24 hours before you start her up.
Congratulations, you are a bad ass mechanic!