It's correct that the light should go off when you press the button, but it should come right back on when you take your finger off. If that's not happening AND it's not engaging the starter, your starter button/switch in the right hand controls should be where you start. Take a look at the wiring diagram, unplug the wires that come from the starter button (may be in the headlight but I think I recal it's in the bundle of wires under the tank), and using a multi-meter in continuity mode, make sure that the switch is operating as it should. When pressed, headlight should be off/starter solenoid on, when unpressed, headlight should be on, starter solenoid off.
Report back.