
Just came up from the garage. Indeed the R20 was damaged, probably from failure of the TachoModule. However I cannot put the blame on this tach input module cause it was not designed or intended for such use. This is merely a small circuit designed to drive older coil driven rev counters. Anyway, I removed fried R20 and soldered a hole through resistor. Actually I soldered two leads and put the resistor on a small board so replacement can be easier if needed again. Hopefully not...
Followed EW's advice and applied Matt_GSXR circuit. The bandit fired up immediately and idled smoothly. Kudos to EWflyer and Matt_GSXR

Maybe it's only my impression but it does seem to startup easier. Maybe a better cranking RPM signal from the new tachinput circuit but definitely a charged battery made the difference. Thanks and kudos to 24c for pointing that too.
Tomorrow I will go for a test ride, same as before, and see how it runs. In fact I just might try to rev it up to red line.
However I am concerned about this notice in the Microsquirt installation guide, where it says that if triggering directly of the coil then connect OPTO IN - to 12V rather than grounding it in order to avoid thermal "meltdown" of components inside the ECU. On the other hand I have already fried something inside the ECU so it won't be the first time

I was wondering however, would it be possible to connect the OPTO IN + to a smaller voltage source (eg to Vref) instead of 12V ? Does less voltage means less thermal punishment of the ECU in this case and is it adequate to trigger the optocoupler? All comments are welcome.
I am also planing to get myself or fabricate a fuel valve that will allow a fuel return line to reservoir without any cutting drilling or welding of the gas tank. Until now I have just tee'd the return fuel line back to the pump inlet but it does get hot -both pump and fuel hoses- and it kind of worries me.
Something like this: http://www.pingelonline.com/powerflo_7310-CH.htm
Actually these guys sell also an adapter plate that fits the bike's tank: http://www.pingelonline.com/powerflo_adapter_plates.htm
So back on the streets. I'll keep you posted.
Thanks and Regards