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On most outboards, the start in gear prevention switch
is located on the powerhead near the shift linkage.
Usually a cam that activates a plunger switch.
That switch can go bad if the return spring wears out or jams.


Found a parts diagram for a yami binnacle mount shifter,
there is a start in neutral safety switch in the binnacle.
60 dollar item...

http://www.boats.net/parts/search/Yamaha/Outboard/2005/2005%20OUTBOARD%20RIGGING%20GUIDE/CONTROL%20BINNACLE%20PREMIUM%20DUAL/parts.html
 
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