Neutral switch

Could anyone please tell me about the neutral switch operation?
The blue and black/white cables are open when in gear, short when in neutral. This tests ok on my bike. 
The red/black and green/blue leads connect directly between Gp sensor and ecu or igniter as the book calls it. Unfortunately there is no mention of how they should test. Should they be short when in neutral? Should they short to earth? Mine do neither and I assume that the switch is buggered. 
If I knew what the switch should do when functioning correctly, I could simulate it and hopefully get some spark.

If it's like the one I've seen different wires should connect to a common connection depending on what gear you are in. Have you tried it in all gear positions?

There may be one on my old motor like yours, I had to use the original because I had a mark 1 igniter.

Cheers Pete. 
I have only tried it in first and neutral. Didn't think about other gears. I will try it out.

When my gear sensor switch went ( 1250s ) the bike wouldnt turn over unless you could get the neutral light to come on ( lowering the side stand slightly & letting it back up would usually do this for some strange reason ) I tried cleaning it  with limited success & ended up replacing it .Sorry , my problem was a bit more clear cut so I didn't have to get the multi meter out .

I have four wires to the gear position switch on the '03 1200S. 
Two are part of the start cut out circuit. Only make a circuit in neutral and allow current to flow to the neutral light and on to the rest of the cut out system.  
The other two, red and green,  go directly to the CDI and short to earth when in second and third gear respectively. They let the CDI know that the gearing has changed and allows a corresponding change in fuel mapping.