Theres alot of great info on here about alternator wiring, you just need to search the forum. I did find this thread that might help. Basic 3 wire alternator wiring question
I would almost bet that the reason your alternator is getting hot with the key on is the #1 terminal has full 12v to it at all times. There needs to be a resistance on that terminal, not a direct connection to 12 volts.