This issue seems to crop up every couple of weeks - I guess the reason it's such a source of confusion for so many people is that there's nothing really obvious about where that blue ground wire goes. The correct answer is, anywhere on the aluminum body of the alternator where it makes good contact. In practice, this means that it's attached to the alternator case using the long screws that hold the case together - yes, the ones with philips heads at the pulley end. There ought to be one of those screws that sticks out longer than the other three, and has an extra nut threaded on to it. The ground wire is secured using that nut. Perhaps we ought to put a photo of this somewhere in the FAQs for an easier explanation. Anybody know how to do that? Or is there already one?

-Chris