I found a diode (1n4004) in the old regulator that was broke in half. Im thinking since the anode was ground its for spike protection. Probably flyback voltagse created by shutting off current to the field coil.
Now, theres a capacitor or condensor if you prefer, that goes on the fender wall next to the voltage regulator. It has a connecor on it, black wire from the capacitor, and yellow on the other end of the connector. The yellow wire is off and I dont know where it goes to. Im afraid that could be why that diode got blasted, if the capacitor is supposed to absorb some of that spike. Where does the other end go to?