NO. You should only ever fuse the wire according to the amount of current that it will see. I.E. fusing a wire for 300 amps when it will only see 120 amps of current is just stupid and possibly dangerous. Also 1/0 AWG is not good up to 300 amps like everyone thinks. Everything else in your post is right on though.
OP: Yes.
Alternator positive to battery positive, fused for the amount of current it will see.
Engine ground to battery negative.
Battery negative to good body/chassis ground.
If the stock battery grounding point is any good, you can use that. If not many people use their strut tower bolts. I prefer to drill a hole in a nice solid piece of metal and secure the terminal with a nut, bolt, and washers. Make sure to sand all connections to bare metal.
With the battery you have, getting new battery terminals isn't necessary since yours has those accessory threaded posts on it. I'd simply make use of them, but allow a few inches of excess wire on the runs to allow leeway for replacing the battery.
Here is a great place to get terminals on the cheap: http://impulse-elect...let%20Terminals
if you plan on soldering them, you can simply drill a hole in the top of the terminals to allow you to solder them like an open ended terminal.