You are describing the way a motorcycle acts when the clutch diode is bad, 
I believe. At least I have a 1984 V30 that had the neutral light always on 
while idling in any gear. It went off while riding, but it flashed on when 
I clutched for gear changes. I changed the clutch diode, and the bike has 
acted normally ever since. 

What you are looking for is an inconspicuous little node on the wiring 
harness. I did a quick Google image search and came up with the one I'm 
attaching, which is actually from an NT650 manual, but it will look like 
that. The one on my V30 was under the seat. Never noticed it before. If you 
look at 

http://www.bikebandit.com/oem-parts/2003-honda-night-hawk-750-cb750/o/m151242#sch308713

the little unit marked (weirdly) 12    13  (stacked) seems to be it, as it 
has the + and - terminals forming a right angle and it plugs straight into 
the harness. Part 12 is labeled a rectifier, however, not a diode. Maybe 
you should call the parts department of your local dealership and see if 
you can work it out. The Internet also has stories of guys buying diodes 
for cheap at Radio Shack and soldering them in, but I suspect you don't 
want to and won't have to go that far.

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