The spark occurs every time the engine is at TDC. The blue wire tells the CDI if the bike is in neutral or in gear. It advances the timing a tiny bit when in gear to cause the idle to be stronger to compensate for the drag of the clutch. I have found on a properly maintained and setup bike, there is no advantage to removing the blue wire. All bikes I work on start instantly, barely a rev with the E-button and not even a full kick with the kicker.
If you search post by " Thumperbloke" he had a mod where he disconnected one of the CDI box wires (I cannot remember which one) and then the motor would fire instantly at the first ignition event. similar to the way KTM's do for some reason yamaha interrupts the ignition event until it sees a certain amount of revolutions. Maybe they do this for cylinder clearing or kick back protection i don't know but his mod was successful in making the E-start much quicker and there for usefull for dead engine race starts. SJMC Don was also successful in using this mod for race starts.
Edited by GCannon, November 04, 2010 - 09:20 AM.