Monte,
If you still have the round electrical connector that plugged into the tachometer still attached to the wiring, the brown with white spiral band is the wire to the oil pressure switch.
Connect a switched 12 vdc positive power source to one lead of the LED, and the other lead of the LED to the brown/white wire, and it should work, as long as the oil pressure switch is functional.
The oil pressure switch has power to it anytime the key is in the ON position, and it gets a ground to complete circuit when there is no oil pressure, and opens when the pressure comes up to 3-5 psi , or so.
On the subject of the diode in the tachometer, that is an engine over speed indication LED on the '79 model bikes.
I posted the previous reply before seeing your test results, with the engine shut off, you should have low resistance, usually under 1 ohm, with the engine running, the switch should be open, infinite resistance, so it looks like your pressure switch seems to be working.