Yes the blue does go to the tail light. And I have some brown here and there for like blinkers and components. But I shouldn’t have any power going to the mag? I thought the ign sends some sort of power down. Going to the mag is green. Green/red yellow and black. I figured I’d get somthing from one of those once the switch is on.

No DC power goes to the mag. Only AC power comes up from it with some of it converted to DC to charge the battery via the rectifier.
Think i'm right on that.
Talking brown there's a Dark Brown & Dark Green in the loom not to be confused with light brown DC power away from the switch.
The Dark two are blinker related left & right after the blinker handlebar switch.
Sorry i guess you had worked that out.

Ok. We’ll I’m assuming there is no way of testing the dc unless bike is running.. right lol? Sorry I’m a nobody. 
how ever I did clean my point and mag area of surface stains and rust. Waiting tomorrow to re assemble, kick it a couple and see if the plug sparks. Seems like everything work on here just no spark. Damn thing. 

Mike have you looked in the tech library for a service manual don’t get frustrated we all have been down that road before you will get it running again 

You're doing ok. I do a lot of guessing.
But DC is battery so anything that runs of that you can test without motor running providing batt is charged up reasonably.
Things like horn. Brake light. Maybe tail light in the US but not where i am. Blinkers, call them indicators if you like, are all DC so your dark green & dark brown left right blinkers when ya use the blinker handlebar switch. Probably a few others.
But anything AC coming up from the mag need motor running or mag spinning at least [i've done that with a good drill & spark plug out], & if it has a bung in the spare plug hole pull that too just to make it easier on the drill.
Anticlockwise direction drill, but direction may not matter just testing for AC volts although i'd never pondered the question before. Not talking the black wire, points wire though as that is cam operated from the points--then again maybe--i dunno lol, as it's possible for the motor to actually run backwards--been there done that accidentaly with points gap too close, but not on a 360. Bad idea.

I’ve looked through some manuals. Wiring diagrams and so on. Tried some things here and there.
I seriously appreciate all the help everyone is providing. I’m going to place the flywheel back in and give her a go tomorrow.
One more stupid question.. but is there a kill switch like in the clutch?? Do I need to hold the clutch in to get first fire? Or is the only switch the ignition. As what I can see there is no emergency kill switch.

No kill switch in the clutch. Just be in neautral & you'll be good.
Be sure the flywheel is nice & tight--very important.

Hi dirtymike.
If you look in the tech library you will find the manual.
Go to it and go to the electrical section.
You will find a test fo the switch.
You should be testing for power coming out of the coils on the stator plate.
For a spark you're testing the black wire.
Also,the second position on your switch is for the lights.
You could simply have a faulty condensor but i would advise you print off the manual and read before you start down an unnecessary route. That's a pointer from the other side of the world whilst eating toast at breakfast.
Regards
Shyted.

& i'm not hungry for a meal so also having toast lol at 6.52 pm on the 'other' other side of the world.
Small world nowdays.

I’m pleased to announce!! I got spark!!! Cleaned the point and flywheel. Just put it on and double check everything. Just by using my hand I was getting spark every pump.. thanks again from all of you and your helpful hints/tips/tricks. Now the real challenge begins… re-line the gas tank. Pretty rusty inside.
Thanks again!!!!