You left out the most important thing......is your engine running or is it off when you performed the test as you described in your posting??
The top brush (the third bush which is adjustable) is not connected to the cutout, it is connected to the field coils! The main brush (the brush on the bottom of the generator closest to you) is the brush that is connected to the generator cutout. Wire the generator as it should be and then start the car. With the correct output of your generator the ammeter should show a slight charge at idle with the lights off. With the lights on and the engine at idle, the ammeter will show either "0" or a slight discharge of one to three amps. Also, keep in mind that the cutout points will not close until the generator speed reaches 650 to 750 RPM. When the points in the generator do close the ammeter will show a charge with the lights off if you have your third bush adjusted for the correct output. As you increase engine speed, the charge on the ammeter should increase as well until the generator reaches it's maximum output based on the third brush setting.
If the cutout points don't close with the engine speed increased, polarize the generator. To do that, have the key in the electrolock off, use a jumper wire and place one end on the cutout terminal marked "BATT", and then quickly touch the other end of the wire to the terminal on the cutout that the generator wire is connected to. You should get a spark, and when you do the generator is polarized.
Start your car and increase the engine speed. The generator should charge. If it doesn't then you probably have either a defective cutout or a defective generator.
