Ok, results are in. I was able to trace the wiring down to the problem and fix. The problem was a melted connector from the wiring harness to battery (more specifically, the wire from alternator). It wasn't easy to see as it melted only the inner sleeve of the connector. I attached 2 pictures, one with connector before pulling apart and the second when I pulled the sleeve out.
Since the connector was melted, I had to ask the owner a few questions to try and figure out the cause. The owner is a friend of mine who I was trying to help out, not that I wouldn't want to be the proud owner of a colt wagon! Once I asked the owner he said "oh yeah", a few months ago I hit a pothole and the battery jumped out of tray (naturally it wasn't tied down) and arched against chassis. It was enough to melt the connector and cause a bad connection. I think he had to replace battery, etc.
Once I replaced the bad wiring, I checked volt with car off at 12.5 and with car on I had 14.5 at Battery both at battery.
Thanks for all your help on this, I appreciate everyone's input.
Images (click to enlarge)
Monday, October 1st, 2012 AT 1:14 AM