|Infamous Neutral indicator oil leak.
The dealer should be able to fix it for you, but it is pretty easy to fix yourself.
1. Disconnect the battery negative cable.
2. Remove the battery cable and small wire from the starter.
3. Remove the bottom starter bolt. Remove the top bolt while supporting the starter with your other hand.
4. Remove the wire connected to the switch.
5. Remove the two bolts holding the indicator in place and remove the indicator, twisting the body back and forth as necessary. Throw the gasket away.
6. Make note of the orientation of the external connection to the curve of the internal metal strip so that they can be reassembled the same way.
7. Remove the nuts & washers holding the assembly together. Push the internal metal part out of the body by pushing the threaded end down on a block of wood. It may help to spray it with WD-40 or carb cleaner. Don't excessive stress the body, as it is made of a bakelite/phenolic material and could break.
8. Clean everything thoroughly with carb cleaner and allow to dry completely. Use compressed air if you have it.
9. Coat the metal sleeve with gasket sealer where it comes in contact with the body. I use Permatex 300, as it is the same color as the body, it doesn't harden, and no curing time is required. Guzziology suggests RTV silicone, but I have used Permatex on 3 bikes and they all stayed fixed.
10. Reassemble the switch with the correct orientation and wipe off the excess sealant. Apply sealant to the underside of the flange on the body, where it mates with the transmission.
11. Reinstall with the curved end of the strip facing downwards. After tightening the screws evenly, wipe off the excess sealant. Do not overtighten.
12. Reconnect the switch wire, reinstall the starter and reconnect the cables. For best results, allow at 12-24 hours of curing time if you use RTV.