Proper ground circuit (stock): Batt to block, block to chassis.
Improved: Batt to block, batt to body; block to chassis (2x).
What rpm is this dimming occurring? If at idle, that's normal, if you're still running halogen lights. My brand new 2002 Ranger did that, back in the day.
If you don't have the starter grounded, it won't spin. That's why when you test a starter out of a vehicle, you have to connect the ground cable to one ear.
That's why, when you changed the batt ground to the body, it wouldn't do anything. Electricity makes a loop. Break the loop, it doesn't go anywhere. Ground the motor to the chassis (2x really only needed if you're adding a system or some other high-amp draw, but it never hurts).