I mounted the H-D regulator directly onto the steel plate without the rubber cushions. I used some oversized bolts between the regulator and the plate to give it an air gap. When I removed the original Cycle Electric regulator I checked the ground and it was perfectly fine. The regulator was very much dead and not just partially dead.
Have had a whole slew of Harley Davidson groups passing through here and have had a few conversations regarding this issue and they all agree that the stock regulator supplied by S&S (Cycle Electric) is a POS and should be avoided. The H-D unit is practically bulletproof and is usually mounted directly without rubber bushings. These guys just love the S&S but really looked pained by the regulator.