If I ground the charge indicator wire instead of plug it into the alternator, the dash battery light comes on when I turn the key on. But if I plug the alternator wire into the alternator, the battery light does not come on.

What does this mean?

The battery light is supposed to come on when the key is in the 'on' position and then it's supposed to go off when the alternator spins up.

Does this mean I have a bad IC regulator or something else busted in the alternator?

Thanks,
-john