I guess a better way to ask it is:
A. do I need to stick a ring terminal on the original yellow that I am disconnecting from the Voltage Regulator and also put it under the nut for the 175 amp fuse where the "new" alternator yellow/white wire is?
NO. In theory all you would be doing is connecting one end of an already powered wire, to another power source. So you'd have 12v+ at both ends and the wire would do nothing.
B. Or do I cut the ring terminal off and use a butt connector and connect 2 yellows together and not attach it under the nut for the 175 amp fuse?
NO/YES. But not yet!
Remember, you may have two, totally unrelated Yellow wires nearby. One of which is for the voltage regulator, the other for the horn relay. The two are separate and not really meant to meet. They can, but that's another story...
If I'm remembering correctly, you said you did have a horn relay. Correct?
But I think I have figured out that the yellow with the ring terminal was connected at the 175 amp fuse to get power, and the yellow from the original voltage regulator was supplying power, so I can either cap off the yellow from the voltage regulator and keep the ring terminal with the 175 amp fuse, or I can connect the 2 yellows (old vr and new alt wiring) together and not connect it to the 175 amp fuse. Am I on the right track? Thanks.
Just think of it like this, The ONLY thing you're doing at this point is connecting the battery to the alternator, I might as well confuse the issue more, by mentioning the TWO ways you're doing this,
One, and the most obvious, is the new larger cable with the big fuse, between the battery positive side of the starter relay and the BAT output terminal of the alternator.
That part you've got down. This is the main charge wire obviously.
The second connection is the Yellow wire we're talking about. This is the "system sensing wire" and tells the alternator's built-in voltage how much charge is needed to maintain the battery.
Don't cut anything until you have fully ascertained what Yellow wire you're messing with. The one on the old regulator should be spliced into the main harness Black wire somewhere under the factory tape, The horn relay has a ring terminal and is attached to the battery side of the starter relay. They are NOT the sane wire.
Is your battery connected? If so, you can test the Yellow wire from the voltage regulator to see if it's got battery voltage on it.
If not, then re-connect the Yellow wire with ring terminal to the starter relay and re-test.
When it's not connected, does your horn work? If not, reconnect it and test the horn again.
Ultimately, if everything is normal as the factory wired it, you will take the wire that you disconnected from the old voltage regulator and connect it to the new voltage regulator. Period, end of story, that's it. Done.
Paul