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I checked the green using the positive battery terminal and I had 12v. Does this mean the stator is bad and I should try swapping in the other one? 

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I checked the green using the positive battery terminal and I had 12v. Does this mean the stator is bad and I should try swapping in the other one? 

Before you change anything did you check for voltage on the yellow wires from the generator with the green still disconnected' I will need to do some checking but I don't believe you should be seeing a ground on the disconnected green wire. My suspicion is the stator is bad but the rectifier may be faulty as well. With the brown wire disconnected from the regulator there should be no power source to the green wire unless one of the rectifier diodes is bad which would allow the battery to backfeed .the generator via one of the yellow wires ( voltmeter red lead on yellow wire black lead on battery negative and ignition off. If you have voltage on one of the yellow wires disconnect the rectifier and see if it disappears)

Wait when I used the battery to test it was I also supposed to have the brown wire disconnected? I just unplugged the black wire and the green wire and put the negative lead to the green wire and the positive to the battery. And then for the rectifier I just test each of the 3 yellow wires seperate and see if I get any voltage draw? I pulled the crankcase cover already and theres some decent rust buildup on the rotating cylinder coming off of the crank that goes between the stator but noting else out of the ordinary. 

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Wait when I used the battery to test it was I also supposed to have the brown wire disconnected? I just unplugged the black wire and the green wire and put the negative lead to the green wire and the positive to the battery. And then for the rectifier I just test each of the 3 yellow wires seperate and see if I get any voltage draw? I pulled the crankcase cover already and theres some decent rust buildup on the rotating cylinder coming off of the crank that goes between the stator but noting else out of the ordinary. 

The brown wouldn't effect the test on the disconnected green and black, I was trying to establish why you had voltage on the green with the ign off hence the rectifier test which will give a more conclusive result with the brown disconnected

Okay so I checked the rectifier and I got 0 for one lead, 0.01 for the other and 0.07 for the final one. Im assuming that those are too small to be the issue im looking for but I could be wrong. 

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Okay so I checked the rectifier and I got 0 for one lead, 0.01 for the other and 0.07 for the final one. Im assuming that those are too small to be the issue im looking for but I could be wrong. 

Those look fine ( just a minute amount of leakage through the diodes) The green should not be going to ground in the generator according to the diagram so I guess this is where your problem lies 

Okay thanks for the help. Ill go ahead with the stator swap then and see if that fixes it. Should I look out for anything when im doing it like a pinched wire or improper installation would it just be an internal short in the coil that I could see. When I took the cover off everything looked fine but this is a bit different stator setup than the past bike I worked on.

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Okay thanks for the help. Ill go ahead with the stator swap then and see if that fixes it. Should I look out for anything when im doing it like a pinched wire or improper installation would it just be an internal short in the coil that I could see. When I took the cover off everything looked fine but this is a bit different stator setup than the past bike I worked on.

Just be careful to follow the correct routing and inspect the green wire carefully for any damage

I am jumping into this, your second post on this issue, as I did on the first one.  The brown wire that connects to the regulator is a sense wire to tell the regulator what the entire electrical system is requiring to function.  The brown wire should have no power if the keyed switch is off or key removed. Did you check to see if the brown wire had power with the keyed switch off. If it does have power then the issue is in the keyed switch.

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I am jumping into this, your second post on this issue, as I did on the first one.  The brown wire that connects to the regulator is a sense wire to tell the regulator what the entire electrical system is requiring to function.  The brown wire should have no power if the keyed switch is off or key removed. Did you check to see if the brown wire had power with the keyed switch off. If it does have power then the issue is in the keyed switch.

Thanks for that, however I don't believe the green wire should be seeing a ground through the engine casing when the black wire is disconnected ?
One more thing to check - with the green wire disconnected from the regulator and the generator connect your voltmeter (red lead to disconnect green wire by the regulator, black lead to the battery negative) do you get a voltage reading ? everything so far doesn't explain why you have voltage on the green wire when the ign is off and the brown is disconnected !

Some environment pics would be very helpful now!

So with everything connected except the brown wire, I put the black lead to the brown wire and the red lead to the positive on the battery and got 12v. That's with the key out of the ignition. Switching the leads I got 0v I wasn't sure exactly which leads to where for that test. However I checked the green with only that disconnected and everything else plugged in and got 0v. I put the crank case with the stator back on but I can easily just take it off again. What if I left everything plugged in but just removed the case with the stator attached and let it sit on a bucket? Would that help me to tell if its the stator grounding out of if its something with the key switch?