Most of what is being bandied about would be true if the FZR ignition was CDI. It isn't. The FZRs use TCI:
- The coils are powered full-time by the key switch. A voltmeter will register battery voltage right up to the TCI (up to the collector pin of the coil driver transistors, if you want to get pedantic).
The TCI / ignitor is powered by the kill switch (via the key switch, obviously).
The TCI charges the primary side of one of the coils by turning on the appropriate coil driver transistor, GROUNDING the coil via the Orange (1-4) or Grey (2-3) wire. This allows current to flow for ~2-3 milliseconds, building the coil magnetic field. The transistor is then turned OFF, stopping the flow of current. The field collapses much faster than it built, sending a substantial "flyback" voltage spike through the secondary coil and so to the spark plugs.
Hunter - take a look at this wiki article, go through it carefully. It won't spark - now what?
The crank pickup coil is a variable reluctor; a lump of iron with a wire wrapped around it, it generates an oddly-shaped AC signal when a lump of ferrous metal (in this case a 'tooth' on the alternator rotor) goes passing by. The shape and frequency of this signal is what tells the TCI what the crank is doing. The values mentioned sound like it's in spec, and it should most definitely have infinite ohms relative to battery ground. Hunter, you had mentioned that you had a DC reading across the pickup's wires; please check that and confirm.