Here's an update on the alternator. I decided to buy the rebuild kit (AutoZone part# CRA-01) for $12(!!)
What the heck... I'd never done something like that before... now I can say I did and it feels great because it worked.
The kit has good instructions and it's all real easy to do... no mystery at all anymore...
note the burned out hole on the right is where the battery post was...
getting new parts