I really don't have any thing to add to this, as the others have covered it pretty well.
I would definately try to freshen up all the connections that you can get to, and for sure work on the grounds, people always seem to ignore the grounds.
I took Stefan's approach...I stepped up to a larger alt. and cleaned all the connections. I had the same problem he did....the entire electrical system pulsed, including the headlights. I bet yours do too, as well as having all the lights dim in general while at idle. Pretty common in a car this old I guess.
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66 GT Fastback 5.0, 5-speed, cable clutch, JBA's, 3.40 gears, EFI coming soon?
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