Throw the instructions away and follow the diagram posted above. As is noted, the kill switch wire colors might be different from kit to kit but the connections should be as shown. This isn't just my opinion, Bomb. It is the right way to wire your ignition system.
Additionally the black wire from the engine (magneto) is grounded inside the magneto cover and does not need to be attached to the frame of the bike, unless, you plan to try using the white wire for a light. My advice regarding the white wire is to securely insulate it so it can not come in contact with the frame or engine case, solder the other connections and protect the connections with heat shrink tubing. Don't rely on the kit supplied plug in style connectors. They have caused more problems than we have room to relate here.
Tom