G'day Bondy and Mark,
Sure looks like a bit of a rats nest. The first thing I noticed is that there are two solenoids and you only need one. In the original engine setup the one mounted to the frame was used and then the Honda was fitted that has its own next to the starter. I'd be using the new one on the engine.
There also looks to be a good few cut wires and joins.
Can I suggest you draw a mud map of all the wiring and how it connects and colours so we can see what you've got. It's a crummy job but it's maybe the best way of knowing what you've got.
It may end up that the best thing to do is just rewire the thing from scratch.....but let's not get carried away just yet

Also, a question for Mark. I may learn something here. I thought/ assumed that the seat switch/blue wire is a magneto kill, not a starter control.