Originally Posted by Sheldon Brown
These generators usually rely on the frame of the bike for one of the conductors, along with a single wire.
My guess is that there is not a good electrical connection either at the generator or the taillight.
If the headlight works there is nothing wrong with the generator itself. It's either the taillight or the connections from the generator to the taillight.
Sheldon "Ground" Brown
Hit the nail on the head, Sheldon. I cleaned up the frame where the contact for the ground is. I also rewired the connection to the bulb a bit to make sure the ground and the live weren't touching- and it worked. Tail light works fine now. Thanks for the tip.