1983 r80/7 cuts out when put into gear

[schrader7032]

I'm having a hard time seeing how the clutch handlebar switch can cause the bike to stall. As Steven said, the clutch switch prevents the starter from engaging if the bike is not in gear (that's from the neutral switch) or if the handlebar lever is not pulled. If I think this through, even if the handlebar switch has failed or not in the circuit but the bike is in neutral, the started can be engage. One use of the handlebar switch is in a situation where you have stalled the bike at an intersection. Instead of taking the time to find neutral, you just pull the clutch lever and hit the starter. But if the switch has failed, you can't do that...you have to find neutral.

I agree with Steven, see if the Motogadget people have a BMW Airhead specialist to see if you are getting the right things hooked up.