remove the looms and mark the wires with tape and a pen, then test the looms according to the diagram, and whenever you have to join new wires to old ones, solder them and heat shrink them. For wires - I used to buy very good wires made by some firm in gujranwala I think - they were really really good (thick core with a strong jacket) with solid colors and no stripes.
Yes by all means relocate the regulator to the original place and use very good chunky spade connectors done with crimps and high temp solder for the main charging wire from the alternator, It would be wise to get a proper side vented battery for yourself or find an old battery with a removeable plate type cap thing with a side vent and vent it outside the car. I remember my 1302 having a hole in the floor where the vent tube connected to.
