Ian,
It should be easy to establish where neutral is. The selector quadrant can only fit onto the end of the selector drum in one way. It's located with two drive pins. When the mainshaft [the one the clutch is bolted to] will spin independently of the countershaft [the one with the final drive sprocket which pokes out of the right hand side] you know you're in neutral .
At this point, one of the spring loaded arms which form the positive stop arrangement should sit in an indentation in the rim of selector quadrant. sadly, I can't remember which side of the quadrant drum the neutral indentation sits in. My bikes have Atlas selectors and they differ slightly from the 500. I think on the 500 it's the middle of the three detents on the outer rim of the quadrant.
Confused? You will be....
Bob