I wonder where this wire goes?

[ninja_butler]

Attached to the horn there is a a small bar-shaped thing which has something to do with the regulator/rectifier. I know that unless it is connected the headlight bulb will repeatedly blow, but I'm not sure where the damned thing connects to!

Circled are the component and the end of the wire.

https://i1213.photobucket.com/albums/cc469/Ninja_Butler/Honda%20XL%20250/regulatortypethingy.jpg

https://i1213.photobucket.com/albums/cc469/Ninja_Butler/Honda%20XL%20250/IMG_0004.jpg

Can anyone shed some light on it?

[Wafer_Thin_Ham]

That's the vaguest paint diagram ever.

Looks like the throttle cable. The throttle cable is within that huge circle you've drawn anyway.
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[jjdugen]

Ballast resistor....?
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[stinkwheel]

Ballast resistor.

It should be connected in pralell with the sidelight. It is already earthed to the frame.

Honda usually use a pink wire for the ballast so if there is a pink wire with nothing connected to it inside your headlamp shell, that's where it goes.
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[ninja_butler]

Ballast resistor! Yes that's it, well done jjdugen and stinkwheel.

The wiring is a mess, it works okay but some of the wires are the wrong colour. I do recall seeing a pink wire though. Thank you very much Stinkwheel, I'll take a look inside the headlight tomorrow.