blue wire to positive is correct, altough not original. the battery positive sits on one end of the solenoid, the frame (grounding) sits on the other side. The red wire to regulator and ignition lock are also on that same end as the blue wire in your first pic. the blue wire is way to thin to be a battery positive btw.
When you push the starter button (black and red/yellow) you switch the solenoid.
when you turn on the ignition, the red wire to the lock connects to black going into the loom.
red is always hot, black is hot when ignition is on. black/white is power to the coils. put the battery positive on black/white and the negative on the frame. kick and smile.