Modern Vespa

Need a wiring confirmation for a malossi vespower ignition kit that I put on an lml motor. It's mostly plug and play but I think I have an extra wire, even after getting rid of the red, white, and green from original CDI. Following the instructions, My green/white kill wire goes to the malossi light blue/light green combo connector. My black goes to the malossi white. My yellow from the regulator goes to the malossi yellow. However, my blue wire in existing harness is obsolete so connecting it to the malossi blue leads nowhere. The malossi blue and yellow are both hot, right? If so, can I just leave the blue unconnected and only run the yellow to to the regulator?

A non wiring question on same kit...notice how much space is between the flywheel cover and the case. You can see the stator magnets. I realize this is not a very well sealed area to begin with but is all the extra space going to cause problems.