Sounds good to me...let me ask a few questions.
Sounds like you have an internal regulator alternator. If so, you should have #1 terminal "white wire" going to an ignition source. Connecting it to to the terminal on the ballast resistor is O.K. as long as it's connected to the side where the wire is coming from the key switch and NOT the side going to the coil + terminal. The RED wire of the DA Plug should be connected to Terminal #2 and go to the battery. I normally just jump this wire to the B+ terminal on the alternator and run one wire back to the battery terminal on the starter.
Here are a few check to make:
Be sure you have the wire going from the ballast resistor going to the positive terminal on the coil.
Make sure the ignition wire from the distributor is connected to the side of the ballast that is coming from the key switch.
I'm wondering if your points are grounding some how now and that's why the ballast resistor is smoking. Why don't you disconnect the DA Plug on the alternator just in case for this check. Then turn the key on and check for current at the Ignition side of the ballast resistor. Then have someone crank the motor over and see if you still have current while cranking. I'm not sure what type of key switch you have but I've see a few where their was no current when cranking and it would never have started. If that part is o.k. then pull the distributor cap and check for current down at the points or see if they create a spark at the point when the open.
I wish I was their.....I get a kick out of solving these type of problems
