Does anyone have any idea as to why my amp meter fluctuates and all the lights brighten and then dim repeatedly when at idle and then it dissapears when I raise the engine rpm? My first guess is a combination of alternator and voltage regulator. Am I on the right track? Please help me!!!

Could be a combination of the two, but first, change the voltage regulator.... it's cheap compared to an alternator, and it may the whole problem to begin with....

Also, check all the connections on the alternator, the connectors to the voltage regulator, the condition of the belt, and your battery terminals while you are at it.