Very Confused!

Ok,

So the alternator gauge is a little twitchy. Like Del said it should read a little above at startup and settle to the middle after a few seconds.

It goes up a little but then settles into a jumpy twitchy type rhythm in the middle.
Connections and grounds look good. I would bet regulator. I would have to read up on how to test one. Is it a points type or a electronic look alike? I installed one of those on my 66 and fried tha battery and burned out some light bulbs from overcharging. Bad ground at the regulator attaching screws. I looks like your external ground has addressed that issue though.