First startup attempt, Melted wire....Help!

thats right Mike, the alternator only has 2 connecting points. In reading the directions for the electronic distributor it refers to the "green wire not used"

The alternator and the electronic ignition wiring are not really related. That is a little confusing.

There are two different kinds of alternators, Three wire and two wire. The regulator you are using requires a three wire alternator. That is the regulator above the can of starting fluid, correct? Orange sticker on it?

How many connection points are there on your alternator? If there are three, the green wire should go to the empty one. If not, you have the wrong alternator. Post a picture of the back of it.

The alternator may not be your problem, but in troubleshooting if you see something fishy, that is usually a good place to start.