Tp answer the questions with respect to the earths
Difference between floating and non-floating ground
The original system is a frame grounded AC system, the ground before regulator and after is common; because the system remains an AC system, this is ok. One side the generator is earthed to the frame and all components within the electrical system are also frame earthed.
When you change to a DC system, you cannot mix the earths for the AC and DC; they have to be separated.
A floating ground lifts the earth at the generator from the frame and connects it the the one side of the rectifier/regulator, the output is connected to the other input. This allows you to use the frame earth on the DC system. You have to modify the generator to achieve this, you also have to modify the bike wiring.
A non floating earth, leaves the generator intact, you only have to modify the wiring, with the AC earth still attached to the frame. This allows the engine mounted items to left unmodified. However to achieve the earth separation the earth on the DC side needs to be lifted from the frame and connected directly to the battery.
Generator output in the original AC system is limited by the use of the yellow wire, this is a tapping at a lower output (around 35 watts) than the full generator rated capacity, the white wire is a full power outlet (around 100 watts). The low power tapping is used to stop bulbs from blowing. As the tappings are at different points in the generator, a phase difference occurs in the output of the generator. A number of difference posts (on this forum and others) have confirmed it is not good to try and use both outputs and the phase imbalance causes a lower output and possible long term damage to charging components.
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