If you read the post, the bike thinks it is still in gear, as he needs to pull the clutch to make it start.
The clutch switch and neutral switch are on an interlock, so you can't engage the starter with the bike in gear, and the clutch out.
If you need to pull the clutch to start the bike that means it thinks it's in gear, and if it's not, the switch is buggered. Sounds like good logic to me.

Anyway, there's a simple test. Locate the neutral switch and connect a multimeter between it and earth, then put the bike in and out of gear. You should get continuity one way and o/c the other. If not, the sw is definately fooked.
Works on datsuns. Relaxes in fords.