If I have a ignition key unhooked will it default to timing for 87 octane. Or will it go into limp mode?
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It looks like it defaults to premium but you wouldn't get a premium light on gauge. When you run in regular mode it looks like you put a ground onto pin 20 of CDI module (pnk-blk wire) through the ignition switch. In premium mode that connection is not made so pin 20 is not grounded. When you disconnect the ignition switch there would be no ground on pin 20 so that is why I think you would default to premium mode.
I just read your other post in the Gen 1 section and you said you don't have the TPS sensor hooked up.
If you have the 01 CDI ignition box I'm pretty sure you need that sensor input.