Thanks Fnixon! (This site really could use a 'Thanks' button) I think your explanation makes sense. And the fact that the regulator is new casts even more suspicion in that direction. So many new replacement parts are just not up to OEM quality.

So to help me understand this better (I'm no electrician)... With the regulator relay points stuck closed, would the current be flowing (backwards) through the brushes to the armature and causing the windings to smoke? Thanks.