OK, first things first, that lead from the alternator shouldn't go through the negative side.
The alternator puts current in on the positive side, to charge the battery.
Secondly, if it sparks massively, there is a pretty large draw, and it's not neccessarily where you think it is. An old amp wire will spark you just as hard as a missing ground on the engine block.
Edit: Did you make sure everything was turned off before you hooked up the battery? Is the starter lead wire insulated?(The biggun, not the solenoid wire) Is there any random unhooked wires that could be touching something they're not supposed to? Have you double-checked your schematics? Is the feed wire coming from your alternator hooked to the fusible link going to the POSITIVE side of your battery?