I agree that it sounds like the VERY THIN delicate needle is bent. I use a magnifying glass and toothpicks or tweezers to carefully bend the needle back into shape. Put a drop of heavy oil on each of the 2 pivot points. It'll help keep the needle moving freely and offer a very slight dampening.
Don't run the engine with the post disconnected as you need a complete circuit to keep the generator from overcharging and burning itself up.