Patrick:
1. Yes, the white wire (LB headlight +) is constant on the US harness. You are using the switch in the RH assembly to interrupt the current flow. If you ride a good deal at night, it would be a good time to wire in a relay since you're doing wiring anyway.
Basically O/R and Y/W are the switched wires so one side of the cut white LB wire to one and the other obviously to the HL. Once again, if you're doing a relay, this will go to the switched side to activate it.
I rarely ride at night (on purpose anyway) so I didn't wire one in. My car's HL's are relayed and it makes a HUGE difference.
2. Yes, the power wire I used was grey to power the citylights from the cluster lights. Since they're hot as soon as you turn the key, it's a fairly good souce. The Euro version draws power from the taillight assembly and I didn't feel like running new wire just for that.
The switched side of that (cluster) was also grey on the RH assembly so the power will go from the cluster, to the switch (Gry) back out the or/blu, out to the citylight. Obviously ground is Blk/wht.
3. There are three positions in the Euro switch: off, middle (citylight/no headlight), headlight on. Obviously middle position is the citylight. I used the headlight ground (blk/wht) for the citylight as the wire was right there and neg is common ground anyway (typical 12v system).
4. On the blue plug harness you'll find a grey wire. This is the wire I tapped for power to the city light. Ironically, on the RH switch assembly, one of the switched wires is also grey.
5. I removed the or/red on the LH switch and connected it directly to the white (same side of the harness). I did this to activate the flash-to-pass feature on the switch assembly. I figured I went this far to adapt it, I want everything to work!
When you pull the trigger, it fires an additional amount of current to activate the HB. You can tell it's working because the HB indicator will illuminate on the dash. It should work in all positions of the RH switch IIRC. If not, in the middle and headlight on.
Hope that helps.
-Randy