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Technically, the fusible link runs to the battery side of the ammeter, through the ammeter to splice 1 (where all vehicle loads are powered from), from there back out through the bulkhead to the alternator output stud. The starter relay stud should not be powering any other running loads directly.
The weakness of the ignition switch Molex connector is not that they won’t lock/stay together, it’s the under-current rated terminals that developed resistance and heat, causing melting of the housing, in fairly short order used in that ignition switch application.
Running these types of voltage reducers will work, gauges will react slower on start-up and may require re-calibration. And, as Bob pointed out, it would not contain the gauge protection of the RTE units. Some of these linear regulators will go full 12 volts should it fail or lose its ground.
They should go into the ignition switch Molex connector. May want to consider upgrading that ignition switch Molex connector to something that can handle the current there, is a weak spot in that system.
As mentioned, the car likely experienced a short on ignition 1 in the engine harness at some point in the past. If you replaced the wire with new wire of the same size and the wire is not heating, the short condition that caused the damage may no longer exist. I would still inspect the ignition...
How is the current charge path wiring laid out? Wire sizing? Routed through the stock bulkhead terminals? The generic blue crimp-on ring connector at the alternator output stud appears a bit underwhelming. I would check your voltage drop between alternator output and the battery while running.
The OP has provided specific info to indicate he is working with a ’70 and later dual isolated field alternator and regulator on his ’68, appearing to be correctly wired. The diagrams posted by Nacho are correct for that conversion.
Higher output alternators alone don’t cause additional current flow through the bulkhead charge circuit terminations. The loads determine the current flow, with correctly placed loads, there should be little to no current flowing through the ammeter, no matter the alternator capacity. The...
Pretty sure there were two versions of that inset/bezel originally, cast open or cast plugged. Made that conversion a couple of times myself back in the day when you could readily buy them over the counter at the dealers. Don't recall having to cut out the blanks. Does have two separate listing...
If you have power from the switch on the black wires at the dimmer control and providing external power to the tan wire gets you dash lights, can only be an open in the dimmer control, bad dimmer. Just jump terminals in the dimmer connector, unplugged, with a piece of wire, should have dash...
Do you have power from the switch, lights on, at the dimmer connector (L7A-18BK)? You could jump the two terminals (E1-18T & L7A-18BK) at the dimmer connector, find a switch that gets you dash lights. Check continuity on L7A-18BK between the dimer connector and the switch connector.