If the kickstand is down it won't start. You should be able to hear the switch click when you pull in the clutcth handle, unless you have aftermarket grips which sometimes are thick enough to prevent pulling the handle in far enough to engage that switch. You can always pull the switch, one screw, and with the bike off just test continuity when you manually press the button on the switch...assuming you have a volt/ohm meter.
Good point, the previous owner put heated grips on and they are fat. When I asked him why it wouldn't start in gear he seemed confused by the question. I don't think he was aware that it was supposed to.
