130amp alternater

No fuse = fire.
I would put a mega fuse as close to the battery as possible. Slightly larger than the capacity of the alt. 175 or 200 would be good choices.

With a 1 wire alternator, I think that your voltage gague on the dash will work, but other than that, I dont see any problems.

A big "yes" on getting the fuse and the upgraded wire. A 200amp fuse should be about right.

The self-exciting alternator will work, it just needs to reach a certain rpm to turn itself on (so to speak). I've heard some folks with them have to goose the throttle after starting the engine to get power output. Perhaps underdrive pullies cause that problem.