Rcimp,
I'm still not sure what's going on. The wisest move would be to forget the VR138 and opt for a new internally regulated alternator...almost as cheap as the regulator. This allows you to get rid of the sometimes problematic voltage regulator.
The safe method would be to run 'R' to #2 on your new regulator (if you go that route). This is where it belongs.
I don't know why it was wired this way before. I would wire it the way it appears in the diagram you found when doing your search.
I can't say this enough, if you aren't concerned about a stock appearance, then the newer alternator, or even a single wire alternator should be right smack dab on the top of the list.
I'm not totally convinced you don't have a SI, or internally regulated alternator right now.
Stuart
