On our 650's the starter wire is yellow and red stripe, it earths the starter motor.
Find the y/r wire in the loom, its under the tank as I recall and earth it with the key on, bike should start!
If the kill switch is somehow getting mixed in to the starter circuit then this should either prove or disprove it.
There is a black common wire between the two so this isn't totally out of the picture.
You could also try pulling in the clutch lever as you press starter, our bikes have that wierd safety system where they wont start in gear without the clutch activated, maybe it is out of adjustment, just a thought.