Rebuilt passenger alternator, installed 2 new relays. Now i got a GEN2 light on. Never had that in the past. GEN2 light stays on all the time though and still no rear battery charging. Im going to trace all wires on the pass alternator now because im still melting terminals. Would not having the fiber washer on the passenger red/white ground wire to alt cause this?
Yes, if not having it allows the red/white ground wire to contact the alternator frame/body.
In a stock 24V system the ground terminal of the passenger alternator is connected to the positive terminal of the front battery (not directly) so that you can read 12V from that passenger side ground terminal to the vehicle chassis.
The frame/body of the passenger alternator is bolted to the engine which means that the alternator frame/body is electrically connected to the vehicle chassis. In a correct passenger side alternator you will read 12V from the ground terminal to the alternator frame/body.
If the ground terminal of the passenger side alternator is physically contacting the alternator frame/body internally or externally (electrical continuity between the alternator frame/body and ground terminal) then you have a dead short there. If the last thing you connect is the batteries the large current flow (like a welder) takes place at that point where you finally complete the circuit (battery terminal).
If the passenger alternator is NOT an isolated ground unit (no electrical continuity between the alternator frame/boy and ground terminal) then you have a dead short and will melt battery terminals when you try to connect them.