if the voltage drops out when u turn the key on.. its either a bad battery, or something is short to ground.
i would start by pulling the alternator fuse. its the easiest way to disable the alt.
Next, pull the spark plugs out and turn the motor over by hand...just to make sure its not seized up. it sure doesnt sound good. if it turns over easily, proceed with the diagnosis.
next you need to check the starters current draw while trying to crank the motor. To do this you will need an inductive ammeter.. 20 bucks at harbor freight.
http://www.harborfreight.com/digital-clamp-on-multimeter-95652.html
if the motor is easy to turn by hand with the plugs out, the starter motor should easily be able to turn it over.
Lastly..i am assuming you are checking batt voltage before starting any of these tests. You should have at least 12.8 volts standing voltage and no less than 11 while cranking.
Voltage drop out only while cranking shows bad battery or bad starter. Both can be bench tested at the auto parts store using a carbon pile tester.