I just replaced this piece recently to kill a drip, and ran into some problems and subsequent solutions I thought I'd throw up here for other people that are lookin for help on it. So, FWIW...
First of all, if you've got that braided cloth insulator then you're just going to want to make a new wiring harness. Oil will just wick through that stuff and you're still leaking.
Take off the shifter, remove your sprocket cover, follow the wire loom from the stator cover back to the blue connector under the left side cover, and unplug it. Cut through the wire loom to expose the wires, clip all the wires up near the blue multiconnector with plenty of room to solder it up later.
Pull the old grommett, clean up the mating surfaces on the case and the engine so you can put in a new gasket. Pull out the stator. There are some "clips" holding the wire leads down. Bend them up so you can get to the wires.. cut through the heat shrink there, and you'll get soldered terminals. Unsolder it, solder in some brand spankin new wire, heat shrink your connections, run the wires through the new grommet.
Be VERY VERY careful when you're futzing around with the thick coil wire coming off of the stator.. you break it down low and you're going to have a bear of a hard time dealing with it.. ask me how I know.
I'd go ahead and run a multimeter to the ends of the leads at this point. Make sure that nothing is shorted or open. Resistance should read something like half an ohm between any two pairs. When you're satisfied that it's in running order, gather up those oil pressure and neutral wires with your three new wires, solder em up to the old blue connector, and wrap em all up with some heat shrink or electrical tape or whatever you want.
Took me about two hours and it's really quite lovely.
