What this resistor does is it allows enough current from the ignition switch to flow thru the alternator to excite it. But once the alternator starts charging it back feeds current thru this resistor to the ignition switch but this resistor cuts the current down low enough so when you turn the ignition switch off the engine will shut off. With out the resistor enough current would be back fed up to the ignition switch to feed the ignition circuit and not let the engine shut off.
Best way to wire in this wire to excite the alternator is to wire it to the accessory terminal on the ignition switch not the ignition terminal. You won't need a diode, idiot light or resistor then.
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