Hy WishekBruce, there is not enough information in your post to answer your questions about whether the engine will run or not. As to the side terminal on the starter switch, as tclederman said it is used to provide 12 volts when starting on a standard points ignition by bypassing the ballast resistor when cranking the engine to start, this feature is not used or needed when using H.E.I. ignition. In your post you said you will be using an external alternator, did you mean an external regulated alternator? By your description of your wiring you will be bypassing your ammeter, did you want to do that? The H.E.I.uses lots of power and the factory feeds it with a ten gauge wire, your ignition switch may not be up to the task of supplying the current needed, you should consider a relay to power the H.E.I., hope that helps.
