Denny,
You need to start over and get better diagrams and instructions!
From what I see in pic #2 you have all the hot leads from batt/alt DEAD shorted to
the sheet metal on the firewall! Either your interpretation of the instructions is off OR,
what ever kit you got is dead wrong!
If you are converting to 12V I'd go with an internally regulated GM alternator. Get that old regulator out of the chassis.
Also, for simplicity's sake,
eliminate that AMP meter in the dash at least until you better understand EVERY wire and what its purpose is. You can always connect it again down the road if you really think you need it in a modernized charging system.
Here's a link to a PDF manual for rewiring a GM truck from Painless Products.
I'm pointing you to it because it is very educational!
They put LOTS of instructional information in them and you should LOOK AT PAGE 32 in particular; and compare it to your instructions.
This page is a BASIC engine compartment wiring set up for 12V GM style alternator. (and protects the wiring with a MAXI 50 AMP fuse under the hood (instead of a fusible link)
This basic set up is what I use to wire up
a new project to get the engine cranking,running,charging correctly before
continuing on with wiring the rest of the vehicle.
Go to Radio Shack and get a cheap $15 Volt/Ohm meter and familiarize yourself with the basic operations of continuity testing and voltage measurement. Get a good quality volt meter for the truck and wire it into the system whether or not you decide to keep the AMP gauge down the road or not.
Keep us informed and you'll get this sorted out! Good luck!
mike
http://www.painlessperformance.com/Manuals/10203.pdf