When you say "inside" terminal you mean the top one in the pyramid right?. Might full field the alt; take both field wires off of it/eng at a fast idle/w (2) jumper wires jump one alt male field to batt positive post and jump the other alt male field terminal to ground for several seconds MAX. this'll tell you if the alt is good as from your descrip the wiring sounds correct unless I'm missing something. You'll hear the eng slow down slightly from the max load if the alt is putting out a good charge