To get rid of the 0.1 ohm reisitence all terminals must be CLEAN AND TIGHT!!!!. Start by soldering the terminals to the 16ga wire with rosin core solder. At the regulator frame, run a flat file across the terminal on the 16ga wire to clean it and use a starr washer between the regulator frame and the terminal you just cleaned and tighten it. The other end at the generator, also solder a terminal on the 16ga wire tha comes from the regulator frame, clean with flat of the file. If you do not have a ground post on the side of the generator, but put the terminal under one of the long bolts that hold the generator together. Clean under that bolt head and if you can get the bolt out (single carb) run it across a wire brush on your grinder and run the flat of the file across the back plate that the bolt pulls against. You can use your digital ohm meter to check each connection by itself and then check both connections going from the generator frame to the regulator frame. Time and patience Your goal is 0.0 ohms.
As to the output of the generator, connect your voltmeter negative to the ARM terminal on the regulator and the positive to ground. Assuming you have 6 volt positive ground. Remove the field terminal, start motor and with one hand on the throttle and the other hand holding the field wire, run the engine to about 1500 rpm and while doing so, momentarily touch the field wire to the ARM terminal on the regulator - voltmeter should jump up over 7 - 8 volts. Do not hold it there - you can burn up the generator. This is just a very brief test at more than a fast idle. If the generator flunks this test, then remove the generator and either take it to a shop or dive into it your self, check out all of the internal connections for clean and tight, use fine sandpaper on the commutator, and perhaps replace brushes. A shop can check the armature for shorts and the field coils for open circuit. You can check the field coils for open circuit by removing the field wire at the regulator and connecting an ohmmeter from the field wire to generator case. Should show resistance. We will be interested in what you find. Report back!!