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On 320-2, see item "A" between the cluster (B) and terminal "61" (usually marked D+ on alt.)
That "A" is the gray, 8-pin connector on the firewall. I think it's in the right of center, but haven't seen a 240 in a while. The red wire is known to go bad on the engine side, usually under the crank pulley.
And the common fix is to cut it at that gray plug (leaving enough to splice onto) and run a replacement wire along the inner fender to the alternator D+/61 terminal.
I'm still not sure about:
Then when I ground that wire to the battery or any ground the 3 warning lites do not light and I'm positive the bulbs are all good.
You say 3 lights, but there should be 4 lit -- are you saying that 1 does light? If the BATT light works, but not the other 3 that are diode-connected, then maybe you DO have a cluster problem. Forgive me if you've explained this before, but I can't see the whole thread while responding
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Bruce Young '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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