Would this test work to test for battery drain?

Disconnected the negative on the battery, hook a test light to the negative post on the battery and the negative battery cable. Take out one fuse at a time to see if the test light gets brighter. If the light gets brighter, you know what electrical system is shorting to ground. Will this work?

To see if its the altornator not charging, disconnect the negative to the battery, if the vehicle dies, then the altornator is bad, is this safe on the altornator or is there a better way to test the alternator?

To test the alternator you need to get to the back of it and use a multi meter connected to the live side and the black wire on the multi meter to earth this should give you a reading that is right out of the alternator.

XR700/XR3000 Points-To-Electronic Ignition

* Converts points type distributors to electronic ignition!
* Increased timing accuracy.
* Replaces many Bosch®, Lucas®, Hitachi®, and ND® units
* All new status LED light for easy diagnostics.
* Fully potted for protection from dirt, moisture and vibration.
* Optical trigger for precise ignition timing!
* More powerful signal than points type
* Most reliable of its type
* 6th generation of reliability
* Short circuit proof
* Positive ground compatible
* 50 State Legal