Should my bike do this?

Should I be able to start my bike IN gear if holding the clutch in?

 

Yes, with the stock or Pazzo hand levers, you can start the bike with the clutch lever held in and the bike in gear. Not recommended by the MSF class and some riders, but I do it sometimes.

 

mine doesent work. which part is broken?

 

In gear and kickstand up, yes the bike should start with the clutch held in. Your problems are in your clutch switch or neutral switch. It sounds like you have a problem with both of them that you need to resolve. Check the connections on both. Both can be bypassed by shorting the wires together that go to each switch.

 

where is the clutch switch?

 

Right where your clutch lever is. Near the pivot point, you should see two wires going to your clutch lever.

 

Up your butt and around the corner.