I believe that is the wire that is supposed to attach to the battery. Without that wire connected the battery will not charge. As per my vague memory of several TT threads maybe 6-8 months ago. I just spent 10 minutes looking, hopefully someone will have better luck finding the information for you.
04 Asphalt: It is an odd wire. The 08 owners manual has a wiring diagram that shows a single blue wire (I'm pretty sure B is "blue" and "Bk" is black in the wiring diagrams), going from the battery negative terminal to ground which usually indicates the frame. However, my 08 TE 610 and others that I've heard of have two connections to the negative terminal - the blue wire you speak of and a heavier shielded wire. I've not traced them. My bike had the blue wire connected and the battery was in great shape and has lasted well. I think that the dealer connected the blue wire during dealer prep. I'll guess that the blue wire is disconnected from the factory to prevent slow draining of the battery during storage before a bike is sold. If not connected when delivered, most electrical functions ground through the shielded wire but not charging - that requires the blue wire, or at least complete charging might require the blue wire. This is a complete guess! Howard
that's funny because the reason I found it was the bike was showing low battery removed the battery to put on the charger and saw it laying there. so this wire goes to neg. post?
Found a thread on it. If it were mine I would research before doing anything, such as reading the schematic. http://www.thumpertalk.com/forum/showthread.php?t=686154&highlight=blue wire
Ah yes the infamous blue wire. . . . it does go on the negative battery terminal and as stated, will not charge if not there. You are not the first to have this problem. There have been several reports of missing blue wires that the dealers missed when installing the batteries. Looks like you got it figured out.
I agree with the SM fender idea - but if you get a Lynx fairing for better headlights and wind protection, it's bottom mount uses the center hole. There's another central hole on the top triple clamp that is unused on the 08's that is a good place to relocate your horn if you go the Lynx route. Howard L. Snell