Hi Bstryker,
the bike's electrics are configured so that the tail light turns on with the key but the headlight only turns itself on when when the alternator starts charging.
Note that if the engine stops (say it stalled in traffic) there's a latching relay that keeps the headlight on until the key is turned off.
The occasional lights not turning on and a crackling noise is as you say, a poor contact. There's a contact cleaner spraycan to fix that.
One cause of the signals coming on but not flashing is a lack of load. The stock flasher unit needs two 27Watt flasher bulbs to work.
The more usual 22Watt flasher bulbs that the PO might have used don't draw enough power to work the stock flasher.
Or the flasher may be faulty. Here's a $10 test. Buy an electronic flasher from Pep Boys or whoever because an electronic flasher will work with just about any wattage bulbs.
It has to be a 2-prong flasher because automotive 3-prongers are wired up wrong for bikes.
The 2-prong flasher plugs into the bike's 3-slot flasher receptacle two ways.
One way it'll work, t'other way it won't.
You'll lose the bike's flasher self cancelling function but if the stock flasher was causing the
problem you'll at least have working signals.