Seeing how your Kill switch is bridged out , I now agree with CanukNortonNut .
With the bike running nicely on the mainstand , gently pull downwards on the wiring where it exits the casing at the back of the points cover , (to simulate the bike coming off the mainstand ) .
The loop in the wiring which should be hanging downward before it goes up the frame tube is where the wires inside may be broken , and only causing the fault when the wiring is minutely moved due to the bike settling on the front Isolastic.
This area of the ignition wiring is subjected to huge vibration across the Isolastic connection .
The problem may be at the connection of the wiring onto the back of the pick-up plate where the wiring is soldered on also .
When you replace the wiring in this area , (if you need to) , remember to leave a nice large loop of wire hanging downwards ,where it exits the pick-up , before it gets cable tied to the frame tube , this will distribute the stresses over a greater length of wire and reduce the chances of it happening there again .... not to say it aint going to happen somewhere else though.
My problem ,,,,,,,,,,,similar to your own , after many many hours of searching , was the Bloody Kill Switch.
These are the reasons we love our Nortons , they keep us interested .
regards Supaflee