I hope that fixs it.
If you jump all three isolator terminals together, it should confirm it being bad by seeing the same voltage at both batteries.
Alt. to chassis being 13.4 is low for a 14 volt alternator.
If it is only seeing 13.4, it will keep trying to produce 14 volts.
That is why it is outputting the high voltages to the house bank.
One of the small wires should go directly to the chassis battery. Any resistance in the connections will screw up the system.
Check the red wire carefully.
Here is a wire diagram.
http://www.prestolite.com/literature..._4800-4900.pdf