wiring problem help

[charger01]

I have a 69 charger running the year one modified harness to accept 70 and later charging system.  running 4 prong ballast resistor as recommended and mopar performance distributor.  it has a green and a blue wire going to the alternator.  upon intial start up for the first time in 20 years, it smoked the blue wire at the alternator.  My question is this...I was looking under the dash and there is a blue wire with a white tracer that comes from the igniton switch, to the brake warning switch and through the firewall to the voltage regulator.  Anyways about 2 inches from the ignition switch the wire is bare.  Could this cause the wire to fry at the alternator?  What would you suggest I do?  Major help need for a wiring dummy.

[Rolling_Thunder]

if any wire (other than a ground) is bare it can cause a short...     my suggestion would be to cover that with electrical tape (no wires should be bare) 

[squeakfinder]

That blue wire with the white tracer might have been loose at the ignition switch where it plugs in. That would cause resistance and make it hot enough to melt the insulation off of the wire there at the switch. On 68's that wire is part of the field circuit and I'm going to guess its the same as a 69. Which does ty it into the alternator in a round about way.