I would first check to see if the switch is firmly seated in its socket. If so,
I suspect that the internal metal part of the switch that determines whether
the light connection is grounded has been deformed. That was what happened
to the switch I took apart.....talking about a 750 switch here.
I am not an artist but attached is a pic of the disassembled switch with a
pictorial below. The red is the shell, blue the ball in front, black is the movable
plunger with the enclosed black spring, and green is the stationary contact that
connects with the wire by means of a screw.
The ball moves to the left when it settles into the detent in the shift drum at the
neutral position. In this position the "green" contact grounds the wire at the "yellow"
position of the movable plunger....at this position the plunger is not insulated and
the circuit is circuit is completed back through the spring to the case. When the ball
is depressed...not in neutral...the plunger moves to the right and the contact misses
the "yellow" area. In this position the plunger is insulated and the circuit is not
completed. Bottom line, the contact only grounds at one position....the yellow area.
Eventually, the coating that insulates the plunger wears away or the acid in the oil
etches it away and the contact makes contact at the wrong place turning on the
neutral light all the time. The other thing that can happen is the part of the plunger
that contacts the ball becomes distorted letting the plunger move too far to the left.
In this case the light will operate backwards, i.e. ground in all gears except neutral.
Not a very good design in my opinion, but hey they lasted over 30 years so ..
If you decide to take one apart, you have to dig out all the epoxy around the phenolic
shell and then unscrew it...easier said than done.
I gave up and sprung for two new
ones from DSS.
Jim