Okay, changed the rectifier/regulator and still blowing fuse. With the rectifier disconnected, the engine will start and run without blowing fuses. With engine running, I measured the DC voltage from the B+ lead from the stator to ground is 12.8; measured AC voltage across the stator leads is 19.9. With engine stopped, measured resistance across the stator leads is 0.1/0.2; measured resistance from each stator lead to ground is 1.4. According to Kohler CH740S Service Manual, stator leads are shorted to ground, so the stator is bad and needs to be replaced.
Does this make sense, as far as blowing the fuse, and the stator needs to be replaced? Thanks for a second opinion on this.