Yes, the Pamco needs power, the coil needs power, so yes they both need to hook to power. The easy way is to hook the power to the coil and Pamco together then run a wire from there to the engine stop switch. Or if no engine stop switch to the key switch.
As far as searching most any diagram that shows the Pamco shows this as well as the install instructions on Pete's ignition web site.
Have your friend that's doing the wiring go to
www.yamahaxs650.com that's Pete's site and read the install instructions.
The wires from the sensor plate hook to the wires coming out the end of the e-advancer box that says sensor. Just hook the wires together by color. The other end of the e-advancer has the wires that go to the coil, power and ground.
Leo