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If the battery light is ON when the ignition is OFF, my guess is that you have a floating ground. The idiot light is an integral part of the charging circuit, and thus if you lose ground the battery does not charge. Start by checking the exciter wire at the back of the alternator, and then verify that the instrument cluster is properly grounded.
Other possibilities: the B230F as installed in 200 series cars have a ground strap that is fastened to the firewall at one end and screwed to a head bolt at the other.
Take a look at your battery cables. Are the contacts clean? Are the cables chafing against the motor or the chassis? If memory serves, the starter is fed directly from the positive cable.
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