You are correct the circuit breaker (CB) connects from the solenoid hot terminal (big red terminal) with two other connections, one (on the load side) going to the rectifier for charging and the other on the source side, same side as the wire coming from the solenoid, going to the power terminal block under the dash. In essence, this means the CB is actually for charging protection only and not necessarily for the power block protection.
What could be wrong in here is that the red wire going to the power block is connected to the load side of the ckt breaker instead of its source side. Or the two red wires probably are switched, i.e. charging wire on source side while power block wire is on load side. Remember, this red wire is for accessories AND NOT FOR THE STARTER SOLENOID. Thus it keeps on tripping.
The yellow wire from the solenoid's hot terminal (same terminal for the red wire that goes to the CB) goes to the neutral switch and then to ignition switch (through the power block terminal under the dash) "S" terminal and when switch to starting position connects it to the black wire back to the control coil terminal of the starter relay, activating and closing the main terminal circuit.
In short, there are three different circuits, one for accessory circuit (red wire from the relay to the power block but uses the source side of the CB as a junction or connection point), second, a starting circuit (yellow wire with the neutral switch) and lastly, the charging circuit (red wire on the load side of the CB). Hope this helps. If you need a wiring diagram, there should be one from old posts. If not. let me know and I can post one.
