I just purchased an 86 virago 1000.  I knew I needed to replace the rear blinker stem as it was cracked and dry rotted.  While removing the seat to run the wires for the blinker i noticed something strange.  The left bolt that holds the seat down did not pass through the reserve tank hole that I think it should have...ive since put the bolt through it...but both sides of the reserve tank were strapped down with little tie straps...and the hole for the right side of the reserve tank doesnt seam to line up...this can't be right.. help?



 

From looking at the pictures you posted, it looks to me like the tank needs to go down and back to be in place. I just sold my '85 1000 Virago and my tank was almost flush with the frame when it was installed. Maybe the previous owner replaced the hoses with shorter ones that prevent the tank from fitting properly.