I'll show some pics then explain.
The alt wiring after cutting off the loom/elec tape
After cutting off the outer shrink wrap
So I did your tests above, everything was as you described and then got to the point of checking my wiring, even though I was sure the wires were shrink wrapped individually, then as a pair, them loomed, then electrical taped, as the pics show.
But sure as s***, I moved the wires away from eachother, and the dash light went out. Hold them close together, back on, I even held them in a cross pattern against eachother, and the light stayed on.
I wrapped each wire in a few wraps of electrical tape, and then together, and that solved it.
So in conclusion, the shrink wrap Im using from radio shack is aparently very poor quality and one could say even conductive! How brutal is that?
I appreciate every bit of help Ive had along the way, my steering is also back to normal and easy as pie. Thank you so much guys