The PO cut the Yellow Wire where it comes from below the relay board up to the pin connector and spliced on a 12" red wire, (#1)and then taped off the end, so it's a dead wire.

He then added a red wire from the ignition switch, through the firewall, (#2) and tied it into the yellow wire going into the wire harness moving down towards the starter.

What would I do to make this right?

It's a '73 original 1.7, switched by the PO to a 1.8 with carbs, and I'm switching that to a 2.0 with carbs and want to get the red wire off the ignition switch.

Also, in the other picture, he cut off a Blue wire and taped it off. Where does this go and what does it do and do I need it?

Seat belt relay problably went out and he bypassed it. Just reconnect the yellow at the ignition switch, jumper at the seat belt relay and correct the relay board. Done!

The yellow wire should go from the ignition switch to the relay board. A 73 won't have the seatbelt interlock relay, so that's not a concern. Anyway, it would go through the relay board, and then to the starter.

The blue wire is very likely the one for the alternator warning light. Chances are the charging system won't work if that is not connected.

--DD

My 73 has a seatbelt relay, or at least it did...

Not sure about your specific problem but I solved lots of DAPO creative wiring issues using Jeff Bowlsby's wiring harness diagrams.

http://bowlsby.net/914/Classic/TechNotebook.htm

Scroll to the bottom section under the "electrical" heading.

How is your build coming? chances at making MUSR? Also, I have two complete wiring harnesses from a 73 and a 74 if that would help you. They are just taking up space in my basement.

-Ross

That blue wire is not stock, if it were me I would fix/replace the ignition harness so its back to stock configuration. Not really sure about what the other issues are from the description/photos, need more clarity.