Hello, looking for help with a couple of wiring issues on a 92 civic hatchback with a b18 engine swap. The previous owner performed the swap and made a quite a mess. I'm trying to clean up the wiring, relocate the battery, install a kill switch, and a manual start button. Here's diagram of what I'm working with:

Here are some of the questions that have come up...

Questions on the diagram below:
The diagram says #1 goes to the engine harness/alternator. Does this wire supply + to the engine harness and deliver + to recharge the battery from the alternator?
The diagram says #2 goes the the battery and starter cable. What gets connected here if I'm also running a wire directly from the battery to the starter motor?


Questions on the wire harness: Where do #1 and #2 connect to? I assume #1 gets connected to the underhood fuse box. I believe #2 is a ground wire, does it connect to the chassis or?


Any help is greatly appreciated. I googled for two hours last night and wasn't able to find the info that I needed. Thanks again!