Lets clarify your problem.
When the battery is disconnected the car runs without a problem, no gauges jumping or warning lights showing.
Connect the battery and all hell breaks loose?
When the engine is off and the ignition switch is on what happens, does your radio and electric windows work ok? Any other changes?
When you start it, any difference?
To check your fuseable link just test with a multimeter.
It could also be your alternator, try starting and running it with the battery and alternator connected and then only undo and disconnect the alternator from the battery terminal to see if all runs well off just the battery.
If so its probably just the alternator.
Also check your earth leads where the meet the engine block and body, take them off and sand the body and lead a little.
Faulty earth connections can cause some very strange problems.
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