Replaced 240 Alternator -WIRING QUESTION

I attempted to replace the alternator in my '88 240 Volvo.
Basically, there are two obvious wires coming from the harness. One has a small eye and goes on the small post. One has a larger eye and goes on the larger post.

The previous alternator had a long screw which protruded from one edge of the alternator body. To this, the ground was attached.

The new one did not have a good place to attach a ground. I kluged a ground wire, but admittedly it may be flaky.

There was one other wire in the wiring harness. It ended with a small tubular end. I couldn't find a place to attach it but the oil light is now lit on the dash. Could that wire be an oil pressure sensor connection?

Here's the problem. THERE ARE SPARKS near the rear of the alternator. Also, the battery reads 11.6V before the car starts. It measures 6V AFTER THE CAR STARTS.

There is one recessed male spade on the back of the alternator marked + . The only possible connection is the wire which I think should be the oil sender wire.

My best hunch is that I simply have a defective rebuilt alternator.

Suggestions?

Thanks,
- CarlD

Sounds like your small or large wire is touching the alt case when you tightening the nut. This board is not very good for volvos.

Go here and post:
http://www.brickboard.com/RWD/index.htm?;mo=11;yr=2006;model=200