I just installed the same unit on my 1250. I mounted the reservoir on the rear fender as suggested in the manual...works well there. You only have to drill one extra mounting hole for the bottom bolt. I used the supplied spacer there as well to tilt it up slightly.
For your vacuum supply just install the provided tee, (You'll need an extra piece of 3/16 vacuum tubing about an 1 1/2" long, which they don't supply to feed the tee back to the intake.) where the vacuum line comes out of the intake on the far right cylinder and then route the line along the inside of the right upper frame tubing all the way to the rear of the bike. From there drill an 1/8" hole in the upper right corner of the rear fender into the area where the tool kit is located and route your line through it right to the unit.
It's important to drill from the outside-in to keep the hole where you want it for a clean appearance.
You don't need any of the metal brackets supplied with the kit to secure the feed line to the swing arm. Use the supplied plastic tabs to run the line through and secure them to the inside of the swing arm with the super glue. Make sure it's where you want it because the glue sets fast.
The glue and tabs actually work very well. After you get it lined up fairly close to where the oil feed should exit at the sprocket, take a hair dryer or better yet a heat gun, (more heat) and fine tune the feed line to where you want it to exit on the chain.
When you're finished the oiler at the sprocket isn't even noticeable without close inspection. Good luck!!