Hy Ryan
Not a pretty photo!!! Looks like the alternator cover has been off for a long time. There is not much that can go wrong with the rotor but there is a lot that can go wrong with the coils. In the alternator cover there are 2 separate coils. The inner coil is the energizer which works with the rotor to create the magnetic fields. The outer coil generates the AC voltage which goes to the regulator. You need to test wire to wire on both wires that go to the energizer coil and then there are 3 wires (from memory) that come from the generator coil, so you heed to test is 3 pairs of wires. For example W1 with W2, W3 with W1 and W2 with W3, if any of these are open circuit you have a problem. Use a multimeter on the lowest resistance scale. If 2 or more wires are open circuit then you need to fix them. The most likely point that they break is where they come out of the cover. Means you have to strip the insulation off at that point make the repair and then cover again with insulation heatshrink or tape.
Not fun, of the 3 alternators I have 2 needed repair at that point.
I have attached a PDF of the XS750-2D repair manual which I downloaded off the web for free - no copyright.
I have also attached a Mikuni carbi tuning guide which I have made up from copying a number of different documents and bloggs that made sense. I cannot claim any credit for the information.
Hope they help you.
Regards
Tim