Re: Amp wires smoking
Hot wires can be caused by a short so the wire is carrying too many amps, or heat from a high resistence at a connection. I'd make sure the connections are clean, tight, and well insulated from ground. This is mainly the ammeter, the terminal box, and the starter switch. Also be sure to get a good cutout because any disconnect in the charging circuit (such as a bad cutout) can make the generator put out high voltage.
A good wiring harness will have the terminals soldered to the wires.
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