Your starter does not have an "S" terminal. The smaller terminal sticking out is to provide cranking voltage to the coil while the starter is engaged, then power routes through the ignition switch and ballast resistor once running.
You should take the ballast resistor out of the equation and have switched 12 volts to the coil since battery voltage will be provided through the ignition switch.
You will not need the bypass wire from the starter to the plus side of the coil, but it won't hurt to leave it in place.
The larger wire on the bigger terminal should feed into your amp gauge and then to ignition switch and is where it needs to be. If it is brown (hard for me to tell) then leave it there and put the batter cable with it.
Last edited by Roy Rodgers; 02/23/2013 7:23 PM.