gee... this makes me appreciate my hub dynamo even more... just two connector terminals on it, so there's no way to mess up.
The dynamo wire that is connected to the mounting bracket looks like it is intended to allow you to connect one of the dynamo terminals to the frame. The frame connection is sometimes used to carry electrical current. Personally, I prefer to just use wires, so I wouldn't hook it up to anything.
Are there any markings at the dynamo terminals?? My guess is that these are two sets of connections, and you only need to hook up to one set. Are there any indications of which terminals are electrically connected together within the dynamo?
My guess is that the rib that is in the middle of the four terminals separates the "plus" terminals from the "minus" terminals (and since this is AC, there isn't really a plus or minus, but it keeps the terminology simpler). I'd try connecting one wire to a terminal on the left of the rib, and the other wire to the right of the rib.
If that doesn't work, try connecting the wires on just one side of the rib.
At the light, just run the wires into the "in" terminals. The "out" terminals are used to connect to the taillight.
Steve in Peoria