monolithcabs

I have a 77' Yamaha xs360 twin that is certainly having some issues with the electric start. The problem is the wire going from the start switch is going directly to ground without pushing it, I have checked the wiring in the switch and its ok, (I know this because I followed the wire all the way to the solenoid with a meter). I have replaced the solenoid with a known good one and have a spare good one to boot. The symptoms are the same for both. When I jump directly from the positive battery terminal to the starter, the starter spins. There are two small wires going from the bike to the solenoid, one is red, which is the hot side and one is blue which goes directly to the start switch, when I plug them into the solenoid, they short to ground, so my only thought is they are being connected through the small coil within the solenoid. Because the red wire is shorting to ground on the hot side, it shorts the whole system. I carefully went through the wiring and traced where the red wire eventually shorts to ground,it is at the points. Now, if I understand this correctly, one of the points is always referencing ground because it is always contacting cam within the points system, correct? Are points suppose to do this? or are they only suppose to contact when the bike is running? So basically what is happening is, the short goes from the points, through the ignition coils, through the red wire, through the solenoid coil, through the blue wire and finally shorting the whole system out. I thought the start switch was the connection to ground only after pushed and should otherwise never touch ground. I am getting voltage on both sides of the solenoid without pressing the start switch, and nothing changes when I press it voltage wise. Can somebody explain? Maybe this is way easier than I am making it out to be....probably. Thanks! I have the manual and schematic.

Hi there,I am new member here and I wanted to say hey to everyone, I also had a few questions about an XS 360 '77 that I am going to be purchasing tomorrow. The bike was purchased from seller with 1000 miles on it about 8 years ago. He said when he purchased it was in near mint condition, but a couple years after he purchased it, it was stolen by some crack head and the guy punched out the ignition and messed with the wiring pretty badly. Also, apparently the crack head decided to punch out the gas cap as well. The bike was finally recovered and has been sitting for some time now and not been ridden but it does have good compression and all parts are there. Being that it is in the condition it is, what do all you fine folks suggest for major things to check out when I get the bike back home? I am pretty savvy with bikes but I have never worked on this particular one. Just thought I would put that out there. Thanks!