Ok, that wire grounding will cause the light to go on, as the pressure switch is a grounding device when no oil pressure is present.
No, the LCU is for the tail light bulb check. Bypassing it means taking it off the bike and jumping wires in the bike's harness plug. Jumping the blu and blu/yel wires gives power to the tail light bulb.
Yes, it will work, your tail/brake light won't work if the LCU is disconnected.
The LCU controls the brake/tail light only, it just shares the oil warning dash light with the oil pressure switch on the engine
It seems to be working regardless of the LCU. Or isn't it actually checking it?[/QUOTE]
Your problem was probably the wire you replaced on the engine that was shorting to ground. Hope I have cleared things up for you and you have solved the problem.
So, must the LCU be hooked up for the Pressure switch to work? OR Do I just have to jump the blue wires and not use the LCU? I'm just not sure what everyone means by "bypassing" it.
With the LCU removed, the pressure switch will not work unless the blue wires are jumped? Is that correct? If so, why does the OIL light come on when the pressure switch wire is connected, and doesn't when it isn't?
The LCU controls the brake/tail light only, it just shares the oil warning dash light with the oil pressure switch on the engine
It seems to be working regardless of the LCU. Or isn't it actually checking it?[/QUOTE]
Your problem was probably the wire you replaced on the engine that was shorting to ground. Hope I have cleared things up for you and you have solved the problem.

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