going to be doing the fake oil tank set up to hide wires and am thinking of going to the barrel style key to mount on one side of the tank. should it be a three position switch or can i do a two position?

there must be some law that requires it as all street bikes have it.
so if you're in a state that has inspections...

If you tap the stock key switch mounting hole with a 1/4-20 tap, you could do like I did and thread it right through.  You'll see the bolt you use to moun it, but I don't think it's too obtrusive, and it lets you keep the wiring harness stock.  Here's mine:



I'm in the process of cleaning up the wiring and fabbing a cap, but there it is...