If you really want to clean things up, then I would can the voltage regulator in favor of an alternator with integrated voltage regulator (but I would recommend a 3-wire setup after reading the articles at the Mad site). The round component attached to the VR is a capacitor used for noise suppression.



You can also move the horn relay, but like John said, this is a primary junction point that is always hot. Make sure you preserve any connections to this point and if you do move it, make sure it isn't going to short out!