the exhaust servo is a valve on an actuator that is controlled by the ECU. Its function is to supposed create addition backpressure at lower RPMs by slightly closing to restrict exhaust flow, opening in the midrange RPMs to allow full exhaust flow for the most power, and then close in the upper RPMs to reduce noise for the EPA and those other folks who dont like loud motorcycles. On a Gen 1, the servo is located in the header.
To disable the servo you can do a few things. 1, remove the exhaust valve entirely by installing a full exhaust system. 2, unhooking the cables that run to the valve so the servo cannot move it. 3 (an additional step to 2), unclip the servo motor and remove that and the cables that run to the exhaust valve.
This mod is designed to create the circuit that is completed by the servo motor so that the ECU does not tell the gauge cluster to flash an FI Error, as removing the servo motor will. Hells made it very cheap instead of having to buy one for 4 times what you would spend on this. It is however, slightly more expensive than the black electrical tape mod. The nice part is that this mod will let you get an FI light when something is actually wrong with the bike and not just for the servo so youd never know.
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