I've a little project coming up where I want to wire up some little 1W led DRLs and heated grips on my XTR.

my question is about the DRLs, I'm using them as additional side lights, can the existing sidelight circuit take the extra load of 2x lights or will I be better off making them part of the extra wiring for the heated grips which will be set up on a switched relay.

The existing sidelight circuit can easily take the tiny load of two DRLs. Just tap into it somewhere convenient. The grips, as you have mentioned, need a fused circuit back to the battery, ideally switched by an ignition on triggered relay so you can't accidentally leave them on.

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On the sidelight circuit am I right to assume blue is the positive wire at the bulb?

Positive is blue with a red trace but yes, essentially it is blue!

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Cheers for clearing that for me