Seems exactly what happened to my dynamo. When testing F+D together I only had 0.2v. On mine the field coil was knackered. When taking it apart, I found the windings short-circuiting all over the place. In this case no magnetic field is generated, so there won't be any power generated.
Worth testing if you got some resistance on your field coil. The book says you should at least measure 2.8 ohms for a 60 watts dynamo.
Field coils and armatures for a Lucas E3 can be bought off the shelf, are not so expensive, and are easy to replace, although you need some special tools to replace the field coil. (I made up my own pole expander, and to tighten the screws I used my pillar drill, and a sawed off screwdriver on which I welded on a nut, put the screwdriver in the drill chuck, pushed down, and tightened them with a spanner on the nut.
Dynamo and alternator rebuilders can be found anywhere, and should be able to help you out if they're serious.
Good luck,
Patrick