another project- another wiring problem!

The VR is doing what it should with the key in RUN but the engine not running; it is seeing too low a voltage at its supply terminal and is putting out as much as it can to the single field wire to try to command the alternator to put out more voltage.... which it can't do since it is not turning. So the VR just sits there pumping out all the current that it can to the field, in essence telling the alternator "HEY, put out some juice, stupid! Yeah, I'm talkin' to you!"

Coil + and - and baallst voltages being the same would be OK IF the points happen to be sitting with their contacts OPEN; with the points open, there is no current flow; the normal voltage drops occur only when there is some current flow. Bump the engine 'til the points are closed (or ground the coil - with a jumper to simulate closed points) and then you will see voltage drops across the coil and ballast.