The blue wire is the neutral indicator wire....and it does have some interconnection to the safety system that also includes the sidestand and clutch switches.
The blue wire does connect up under the tank near the coil.
The sidestand safety switch should connect to the wiring harness on the left side of the bike, just behind the painted side cover.
BabyHog posted the wiring diagrams in the Technical Section.....go look for the index and links thread in the Technical Section....that will help you bunches.
http://suzukisavage.com/cgi-bin/YaBB.pl?num=1294779818Another post that wil help is this one:
http://suzukisavage.com/cgi-bin/YaBB.pl?board=tech;action=display;num=1099317926Everyone should become familiar with the stuff in the Technical Section....as it can be very helpful.
Dave