What does this do? and does this need to be connected?
 

what is the purpose of the thing in the first picture, it is connected to my positive terminal, and the second one, im installing new cables and need to know if i need to strip a section in the new ground wire and connect it liek the stock one is in the second picture

http://i38.photobucket.com/albums/e1...3/IMG_3523.jpg
http://i38.photobucket.com/albums/e1...3/IMG_3522.jpg

Those are fusible links in the first picture.

I'm going to go with a yes for your scound question of reconnecting them and grounding it. You do not want to risk of starting an electrical fire on that beautiful car

Fusible links in the first picture. Definitely needed. For the second one, yes you should ground it there. But rather than strip a section of a long ground wire, get two shorter ones. That's the way I did it. I also ran another one fro that same spot to the alternator mount bolt.

Rich

couldnt get that clamp off the stock wire, so i should just clamp two wires together, and then ground it behind the starter as well??

The two new wires should come with eyelet type (just a round hole) connectors crimped on the ends of them. Just bolt them both to the same place. Might have to buy a slightly longer bolt and use a washer.

Rich