Mark,I love hearing about your posts the the progress with your sons car. If you understand checking battery and alt with a multimeter I would suggest two things.
First check your grounds. The issues that you have pointed to with corrosion problems suggest that this could follow through to grounds.
Then if battery, alt (stator and rotor) and grounds are right by default. An alternator will have both regulator and rectifier. Diods and conection and should be easily checked with a good multimeter. Check and eliminate by defalt.
I thought that this era Merc sould still be running a generator?
Cheers
Warren