Isn't the kill switch grounding? could the kill switch wire be grounding somewhere on the ing side??
Does not appear that way.
Looking at the schematic this is how it plays out.
Power is supplied from the ignition switch to a fuse. The output of this fuse (B+) goes to 1 side of the engine kill switch. This switch is shown as Normally Open. Therefore you would need to press the kill button in order to pass power forward pass the kill button switch.
If pressed, that power that now goes through the switch and feed:
1) ignition coil.
2) Ignition control module.
The entire setup would make more sense if the Kill Button was Normally Closed instead of Normally Open.
The way it shows on the schematic makes little sense.
It is possible there is a type-o on the schematic and the kill button is actually Normally Closed.
That would make the entire circuit logical. Power would always be feeding those two modules. A break in that wire would kill the engine. So a twist of the bars would do it.
Do you happen to have a voltmeter with you? I want to make sure the kill switch is not really normally closed and the schematic has a type-o.