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That one's a rubber hose so pretty temperature resistant and there's plenty of airflow in from the front of the tank / stem area, so I'd say it's safe too.

I think I will keep it above like you guys, just to have it all tucked within the frame. But it could be done both ways I see.

After filling the radiator and turning the engine a few time to move the coolant around I left the bike alone, and later noticed a leak from one point from the thermostat housing. Just from one if you can spot it. I made my own gasket and applied liquid gasket. Seems like I missed a spot when putting it together? I'm quite surprised because I can't think of doing anything not right, and it's straight forward. The good thing is it's easy to disassemble and inspect. The radiator will be coming off anyway - it is just a leak test.

in that case it's a successful leak test Stan! ; )

RChaloner - sweet taste of success! haha

Indeed, a weird thing with those drops but I have an idea where they came from. Imagine this - first I installed that thing just to turn around and see the shiny thermostat sitting on the table!! That can happen when you don't have a real garage to lay out every tool and part. I had to remove it and install again. That multipurpose gasket material was purchased from an automotive shop (Lordco) and quite hard. I think maybe so me liquid gasket material got wiped off and this created this 'drip'.

I just came back after 8 hours and checked on things. The paper towel I placed underneath is dry, and looking into the radiator there is no coolant loss that I could visually detect. Now I almost feel like I would be checking on that housing for almost academic reason. I have a feeling that if I leave it alone that would be it and any few initial drops were just there to christen the bike. Such things actually do happen, and that's also why it is suggested to wipe an oil gasket with oil to make it sealable instead of installing them dry. In this case, my gasket was dry, so perhaps some coolant penetration actually made the contact surfaces seal.

I will see what happens. I might just leave it and see. The radiator has to come off anyway to install the exhaust pipe flange so I will inspect it again closely.
Anytime, this area is easy to get to - just remove the radiator and that's easy.

There should be many updates in the coming two weeks.

Cheers and have a goodnight everybody! (almost midnight in Canada where I am)

Just one short detail to the above post. I wanted to keep any gasket residue from interfering with the thermostat, so I was very conservative with applying a liquid gasket, a very thin layer. I'd suggest adding some more 'meat' on those gaskets, both sides, instead. Just making sure there would be none coming out inside after tightening the bolts, so thicker towards the outside edge. But I guess many people have done this so most would have their proven method, which I'd like to hear about.

It likely goes against some conventional wisdom but I apply "the thinnest film" of light clean oil to the side of a new gasket that I want to release. Still using most of the OEM gaskets and @38 years and 80,000+ kilometers they're still dry. Works for me.