I gotta drill holes?!
OK the first picture is of the finished holes. First drill pilot holes then you will want to drill the holes just slightly larger than the brass welding rod you will be using for your pick-up sensors. Use a micrometer to get the right diameter; you want the holes to be as close as possible to the brass rods.

 

What I did to get the right length for the pick-ups is to stick the rod in, eyeball it to about the same height as the other factory pick-ups, mark it with a sharpie, and then cut it off with a dremmel tool. I then soldered the wires to one end of the pick-up. Next I slid the new pick-up in a hole and super glued it in from the RTV SIDE. You want to get the pickups as close to the smooth flat side as possible, but not below it! A little sticking up is OK because you are going to sand them all flat with fine sand paper. You will need to solder wires to the second and third gear factory sensors; DO NOT SOLDER A WIRE TO NEUTRAL! LEAVE THE NEUTRAL WIRE ALONE! You should have a total of 6 new wires in addition to the 3 original factory wires.

Ok here is a picture of the pick-ups all smooth. You need to use a fine grit sand paper like 600 or 800. I laid it flat on a table top and just ran the sensor over it. Go only in 1 direction! Once you start to get into the plastic you are there. Run your fingers over the new pick-ups and the factory ones, if they feel the same you are golden.

 

Now refill the hole with RTV Silicone. I used high temp red RTV. Attach one of the plugs to the ends of your six wires; I bought my plugs at Radio Shack. After the plug is firmly attached wrap all the new wires in black electrical tape. On the left is my finished modified neutral sensor switch. Reinstall it in the bike and part 1 is done.


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