Hear is the instructions for painless for 1969 does use the newer style regulator so ignition on goes directly to one field of the alt and splits off to regulator.

Other field off alt (green wire) goes to the other post on regulator.

If this is grounded it charges full regulator controls or should control amount of ground to regulate how much the alt fields are energized thus output

http://static.summitracing.com/global/images/instructions/prf-90542manual.pdf