Replaced the alternator last night and have driven 55+ miles so far...no check engine light and no surging issues, so the issue may very well be fixed. Once I drive back home today I will know for sure.

 

Good, let us know if it stays resolved.

 

Fixed. The new alternator did the trick. I have driven over 150 miles since replacing the alternator with no Check Engine light and no engine surging/drivability issues whatsoever.
(a new distributor did not fix or change the issue in any way, so I put the original distributor back in)

 

I replaced my alternator today and apparently solved the issue. Someone in another thread mentioned that when he unplugged the alternator the car was easier to start. Mine ('96 F22B2 manual) was taking three tries to start then finally wouldn't start at all, but would start after a couple of tries with the alternator unplugged. I hated to say adios to my 29 yo original alternator: the bearings were still good and battery charging and lights were fine, but a rebuild kit was as expensive as a new generic unit. Thanks to all contributing to the knowledge base!

 

My fix lasted maybe 10 days but the CE light and symptoms have returned. Any suggestions whether the alternator diodes are being zapped by something else in the circuit?