Hi George, the VR is definitely grounded and has all it's copper grommets.
I was checking for grounds in the Field circuit (HRLincoln's idea) and couldn't find any with the engine off. I reconnected the battery and there were no sparks flying (like when I disconnected it to stop melting the generator). So, being the daredevil I am I thought I'd fire her up and see what happens. Engine started fine and lo and behold the generator was charging! A very, very strong output for idle. Shut her down and disconnected the battery: no sparks, no discharge.
So there's no major ground in the Field circuit wiring, it has to be cutout points intermittently sticking, as George said.
