OK, your hookup is correct, Armature terminal on top with the big wire attached. That wire should go to the "A" terminal on the regulator, the one in the middle. The small "F" wire attaches to the corresponding terminal on the regulator. I still suspect the brushes, or possibly an open-circuited field coil. When you get a chance to tear the generator down, see if you can get a circuit from the F terminal to the insulated brush with the armature removed from the generator. Use either a 12 volt test light and a battery, or an ohmmeter. There should be approximately 20 ohms' resistance or less to the field coil circuit.
After polarizing, there is a small amount of "residual magnetism" that allows the armature to develop about 1/2 volt with no wires attached to the generator. The field circuit picks this voltage off the insulated brush, and creates a strong magnetic field when the "F" terminal is grounded either by the regulator or a jumper wire. This raises the voltage present at the "A" terminal of the generator and causes the cutout relay to close. If the voltage does not rise at the Armature terminal when residual voltage is present and the field is grounded, there's an internal failure in the generator.
Jerry
