EDIT AS OF 2012 READ THIS FIRST:
I'm not going to eliminate all below, but it is now unnecessary... One cut wire will take care of the issue. Read on:
The reverse RPM limiter was put into the CDI software near the end of the 2001 year, we assume to prevent injury (and lawsuits) from going too fast in reverse. The CDI used the signal from the red stator wire (reverse rotation winding) to count RPM to determine where to limit.
THe red wire (reverse rotation winding) is not necessary for an electric start bike, it was left over from when they used this engine on a kick start motorcycle. We have found and demonstrated that by disconnecting the red stator wire the reverse RPM limiter's limit is raised so high as to not have any bad effects, and nothing else is affected.
SO, either cut the red stator wire, or remove it from the connector and your reverse RPM limit issues go away... this wire comes from just behind the left side case cover and winds up to the frame where it goes through a 4 pin connector mating to the harness. You can remove the pin from the connector or just cut it near the connector and you are done!
END OF 2012 EDIT
NOTE: Thanks to zz77z77z, it has been pointed out that the wires shown below are not all in the 'BIG CDI CONNECTOR' as stated in the drawing, and the connector that they ARE in will depend upon whether the CDI/Harness is an 01 or 02+ model year.
Okay, here's how to eliminate the reverse limiter but still have the light. Less than $10 in Radio Shack parts. You will need to solder wires to the new relay (or have a friend do it for you), but it's quite simple. Make sure to use shrink tube or electrical tape or hot melt glue on the relay's soldered joints and on the one wire left free after cutting (Green and Blue).
I suggest you do this in the battery box near the CDI since all the wires come to the largest of the 3 CDI connectors. Then velcro or double stick tape or somehow mount the new relay next to the starter relay.
I suggest you use quick splice connectors because they are very easy to splice into an exisitng wire. Else, cut away a bit of insulation, solder and then tape well! Nothing here is high current, so 24 gauge wire or so will do fine for your additions. (also available from Radio Shack).
EDIT: SOLDERING AND SHRINK TUBING THESE JOINTS WILL MAKE A BETTER, LONGER LASTING CONNECTION, THE E-Z SPLICES ARE SUGGESTED SOLELY FOR EASE OF CONNECTION FOR THOSE WHOSE SOLDERING SKILLS ARE LACKING. YOU CAN ALSO USE WATERPROOF WIRE NUTS MADE FOR SPRINKLER VALVES, AVAILABLE AT HOME DEPOT OR EQUIV. QM
How it works:
The relay is actuated when the reverse switch connects to ground (quad is NOT in reverse). When the relay is off (quad's IN reverse), the wiring is such that the relay pulls the reverse light connection to ground. The other end of the reverse light is already attached to key switch controlled 12V. This turns the reverse light on, but only if the key switch is on too. If the key switch is off, nothing gets powered.
Notice that the CDI's reverse switch connection is always connected to ground, so it won't ever turn on the limiter.
Please feel free to ask questions; and suggestions for improvements to this drawing are welcome!