Your getting so much advice I hesitate to respond.
If you look at the picture you see where all the wires come together on the bottom terminal. ( I said in the pic leave the big one on, maybe not till you check the terminal itself) One of them wires is causing problems. Also that "extra" wire on the amp gauge shouldn't be there, somone used the amp gauge as a terminal block. Its not a big deal, all the terminals on the amp gauge are positive, but extra wires screw up the readings.
Take that nut off that lower terminal, and remove all the wires. Don't worry about what order they are in like the amp gauge they are all positive. When you put them back just make them fit as neatly as you can. Including that extra wire that was on the amp gauge.
So now you have one big wire on each terminal of the amp gauge, and no wires on the bottom terminal block. There all just hanging there not touching anything right?
Now you use your meter, set to ohms scale of about 100 ohms. Make sure your red lead is in the positive/volt/ohms hole of the meter. Make sure the black lead is in the ground/common/negative hole. Your meter will be marked with one of these options I don't know which one.
A quick test to see how your meter works, turn it on, notice the reading with the leads not touching anything. Now touch the leads together, notice the reading goes to zero or at leat some decimal like 00.003. Thats what a dead short looks like.
You still have the battery disconnected right? So connect the black lead to the negative battery terminal (the wire not the battery). If you can clip it in there so you don't have to hold it it will be easier. Now touch the junction block screw with the red lead. Make sure you have good contact, as rust and dirt will make it look like your not touching it. If you get a zero reading the screw is grounded to the frame. If you can't get a reading even after scratching through the dirt and rust move on to the wires, test them one at a time, again making sure you have good contact on each one.
Anything zero, or near zero is suspect. There are coils in the regulator, ignition, and generater, they may not read zero which is normal.
When I was first lurnin troubleshooting I hated the idea of pulling something out of circuit to test it. Just so you know-with all them wires on the juction block screw, everything will read a dead short.
Good luck! PcRider