Well after getting my knuckles wrapped by my mate Rob who'd sold me the bike originally, and getting some very polite and constructive feedback from the fellas on XS650.com, it was obvious the taillight assembly had to be re-located.
Truth be told I was pretty hasty with where I had originally mounted last weekend, with my wanting to smash it off with my boots everytime I walked past it in the living room!
Unfortunately my ballsup has left me with a fender that resembles Swiss Cheese. I'm proud to say that I'm probably the best person I know when it comes to making holes in perfectly good metal, however, I'm not so good at repairing them.
I'm really very happy with how it looks now, with the lines of the bike remaining relatively undisturbed.