The old regulators are mechanical types with coils and contact points like an old style ignition system. When the points stick closed you can see overloads occurring. If the regulator has a black metal cap held on by two screws odds are it is a mechanical type.
The main output from the 10 amp alternator is direct to the battery. The internal diodes stop the battery from discharging back into the alternator so if the smoking wires are at the regulator, the main diodes are OK.
Many owners replace the original charging system with a Denso one wire alternator with 40 amp output which eliminates an external regulator and is easy to connect.
Look at post #16 in the following thread.
Desno
Dave
The two Unit regulator assembly controls maximum output voltage and the
switch operating the "charge indicator"
lamp. Control of reverse current flow
through alternator with engine not running
is accomplished by alternator
diodes and control of maximum current
output is accomplished by alternator
design.
When ignition switch (IG-Fig. 76) is
closed, current from battery flows
through indicator lamp (L) and "L" terminal
on regulator, through one set of
closed points to grounded (E) terminal,
causing lamp to light. Current also flows
through "IG" terminal on regulator,
through other set of points, then
through "F" terminals on regulator and
alternator to energize alternator field
coils.
When engine is started and alternator
commences to charge, main current flow
is from the "B" terminal on alternator
direct to battery. A second minor charging
current flows through the "N" terminals
on alternator and regulator
where it energizes the indicator lamp
relay winding, opening points in indicator
lamp circuit and closing points to voltage
control relay shunt windings.
When battery is fully charged and
alternator output voltage rises above
regulator setting (which should be
13.6-14.6 volts), current in voltage control
relay windings opens upper set of
points in voltage control unit. Field current
from battery must then flow
through built-in resistor in regulator and
charging rate is reduced. In actual operation,
points oscillate rapidly between
closed (upper) setting and open (resistor)
setting at slower operating speeds; and
between open (resistor) setting and
lower (grounded) point at higher
operating speeds.
Rated output should be 10 amperes
and regulated voltage should be
13.6-14.6 volts.
84. OVERHAUL. Refer to Fig. 77 for
an exploded view of alternator unit.
Renew brushes if worn to scribe line and
brush springs if heat damaged. Only the
brushes and springs are available separately;
if any other damage is present,
renew alternator assembly.
85. REGULATOR. Voltage regulator
is available only as an assembly and
adjustment is not normally required.
Output voltage is controlled at 13.6-14.6
volts, with a rated output of 10 amperes.
With wiring disconnected or regulator
removed, check alternator using an
ohmmeter as follows:
Touch ohmmeter leads to "IG" and "F"
terminals of regulator. Ohmmeter
should read zero. If cover is removed
and upper voltage control points
manually opened, 11 ohms resistance
should exist across resistor.
Touch ohmmeter leads to "L" and "E"
terminals of regulator. Ohmmeter
should read zero. If cover is removed
and light relay points opened, 100 ohms
resistance should exist across voltage
regulator coil.
Touch ohmmeter leads to '*N" and "E"
terminals of regulator. Reading should
be approximately 23 ohms.
Infinite resistance should exist between
"B" terminal and any other terminal
unless regulator cover is removed
and light relay armature pushed down to
connect lower set of points. With armature
depressed, zero resistance
should exist between "L" and "B" terminals
and 100 ohms resistance should
exist between "E" and "B" terminals.