UGGGHHH! I just looked up your generator and I see it's the one with two output wires plugged into the side of the case. That is quite the design. That plug is supposed to never be disconnected. Doing so will degrade the terminals and lead to them overheating and failing. Replacement generators come with that plug already installed. You are supposed to cut the wires and splice the new ones to the car's harness.
The fact the battery warning light goes off when the engine is running proves the generator is working. Close to half of battery voltage will appear on the white wire when the unit is generating an output. That tells the regulator to turn the light off.
Back-probe one of the black / orange output wires to read the voltage while the engine is running. If you find between 13.75 and 14.75 volts, it's working. Measure the battery voltage next. If it's lower, near 12.6 volts, current isn't getting back to the battery. Look for a fuse link that's burned open.
If you find 12.6 volts or less at the output wires, those terminals have burned up. The repair will consist of trying to clean and shine them up and replacing the connector. If that repair fails, you'll need to replace the generator.
Friday, August 12th, 2011 AT 7:14 PM