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Oh Vey! I've got a 67 K with a 2.2. Different but similar problem, check the ground straps at the battery and the wiring to the clamps. My guess is a bad battery. On the other hand a 2.2 swap means your rear harness has been modified. I bit the bullet and put a new, correct, rear harness in. I do get the red light with low RPM's. On the other hand probably Al's thought.
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