it wont matter if its got a bit of insulation missing as its an earth but it does need to be tightly fitted with a good contact either end.are you sure the ht cap isnt getting wet and shorting the spark out to earth?it could aslo be the primary ignition coil that is breaking down when it gets warm its not uncommon for them to pack up and if it has got moisture on it and frozen it may well have damaged the coil.you can get a new one from electrex they have a website.this is one of those problems that needs to be in front of me to look at but have you checked to see if it has a spark still when it cuts out ?
adam bike doctor, January 2010