Another thing, to explain why you have continuity with the Red/Green wire.
On your regulator you will see the letters: A S I
The A is your battery monitering circuit, this tells how much voltage is needed for battery maintanence. This is an uninterupted circuit strait to the battery/block.
The S is for the "Stator" circuit, you'll see this wire come out of the reg. plug and go right back into the stator plug. This tells your alternator to start charging.
The I is the Red/Green wire, it is grounded UNTIL the alternator starts charging. This is because it is what powers your idiot light inside. If the alt doesn't work, you'll have power to one side of the idiot light and a ground on the other side, which in turn makes the light come on. When the alt starts charging, there will be a positive charge on both sides of the light, and as a result, it will go out.
Another thing about the ( I ) circuit is that the bulb in your dash breaks the power signal down to 8 volts. This is the initial signal that powers up the regulator in the first place.