it should not be loose. tighten it up all the way & try it & see if your good but I would be inclined to get another one as you wouldn't want to chance on being majorly inconvenienced by a "no crank" at the wrong time from such an inexpensive part. EDIT with this being a new breakin you might switch the key to "on" & see if the ecu/ballast/coil are all getting fire & jump the coil neg to ground to see if you ARE getting spark from the coil secondary wire as you want it to fire IMMEDIATELY then at the relay jump the "batt" to the brown solenoid wire to get it cranking/started. Easier with several helpers which would be a good idea to have them there at breakin, one to add trans fluid one to check for leaks one to adj the idle speed screw & you in the driver seat to watch the gauges & shout orders . With a sucessfull breakin you will feel better about fixing the relay problem when you are done and read this article "break in secrets" at www.mototuneusa.com and when you immed get the rpm up to ~2500 or so rap the throttle many times during the 20 minute breakin.