Three wire alternator on a two wire system?

Yes, you can use it but you need to address the 2nd field wire requirements! If your entire wiring system is still 1968 OE, you can simply ground the 2nd field terminal to the case
Of the alternator with a spade terminal on the field spade and a jumper wire to the case!

You can also do it the correct way and run a 2nd field wire from the terminal back to the vtage regulator and splice it into the blue wire. Heck, maybe go all the way and switch out the old regulator with a newer style modern version and pigtail from a 72 and later car and do the splice all at once! The newer regulator is a must with electronic ignition and will set you up for this swap!

Of course Del will chime in and offer the most comprehensive evaluation of this application!! Geof

LOL, well your answer is a little confusing to me

You MUST a 3 wire alternator with a 70/ later regulator, which looks like this

http://www.jegs.com/images/photos/300/312/312-P4529794.jpg

This would require adding one more wire to the harness, from the second field terminal back to the regulator

Otherwise, if you have the 69/ earlier regulator which looks like this

http://thumbs2.ebaystatic.com/d/l225/m/mzS7A7SnIplR_isvA3MY2NA.jpg

Jus ground the second field terminal. Electrically it does not matter which field terminal you ground.