If it's aircooled and you don't need to fill it with water, then you have the standard 126, and not the 126BIS. BIS is liquid cooled.
If you haven't already, watch this:
[youtube]http://www.youtube.com/watch?v=EqdrkZu50Vw[/youtube]
so you know how an alternator works.
Now you need to figure out if the fault is in the rotor coil (electromagnet), field windings, brushes or regulator.
I really can't know exactly what wiring you have on the alternator, (you might have a different one to me)
but basically mine is as follows:
*Large output wire coming out of B+, which goes to starter motor then to battery.
*Smaller wire (black) alongside the larger output with a spade type terminal which always carries 12v. Goes to lower cluster of contacts on alternator which goes to one of the brushes. Comes from the instrument panel's charge light. I assume (but don't know for sure) that this powers the regulator and electromagnet. Someone correct me if I'm wrong.
*Another wire (brown) similar to this one which seems to come from the alternator's diode rectifier. Also goes to the group of 3 contacts.
*Another wire (yellow) which goes on this contact group and comes from the regulator. I assume this wire 'tells' the regulator what voltage is being produced at the rectifier and whether it should excite the electromagnet more or less. Again, this may be incorrect, but it seems to make sense to me!
*A single thicker green wire coming from the regulator and going to the top contact on the alternator. Completes the circuit for the rotor / electromagnet.
Like I said, you may have a different alternator. Try taking a photo of it and putting it up?
And what I did to test mine was this: (And If you have no idea what you are doing, then you may want to take it to a mechanic to test for you.)
Disconnect all wires from alternator. And carefully put the wires with 12v aside so they don't arc on the metal engine body! Then, take 12v straight from the battery, or another supply, through some crocodile clips. Start the engine up and while the alternator spins put the 12v across the two brush contacts, and with the multimeter test what voltage there is on B+. Mine read 15 - 19 volts. Be careful though, because there is that fan belt right in front so don't get your fingers caught. I also held one clip and put it on the contact very quickly and took it off, as I'm certain full 12volts is not good for the rotor. (I got a bit of arcing)
As I got 19 volts from B+ when putting the 12v across the brushes, I know the windings, rectifier and rotor are fine. The regulator is at fault!
I have to stress that you should really do this with the alternator out of the car, by spinning it up with a drill. I got pretty close to that belt as it was spinning..
Also, test the brush contacts that there is an electrical path flowing between them with the multimeter. I took mine out and cleaned 'em.
Phew, hope some of that helps.
Alastair