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Dan, I have a mechanical VR (Ford reproduction) and initially had the light on/no charge situation you describe. I took the cover off to watch the VR work (hooked up to the car, including ground, but not mounted on the footbox). I noticed one of the two leads to the VR frame from the "bobbins" (for lack of a better term) didn't appear to be soldered as well as the other lead. This was corrected and voila - it now charges. It doesn't seem to get "excited" enough to charge, though, until after the first time the engine has been revved to 1500 rpm or so. Other than that observation, I've had no further charging problems after 200 miles.
Hope this helps - good luck!
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