It wasn't the coroded cable that caused the battery problem. The corrosion is caused by leakage around the post over a period of time. Any time you see the battery connector corroding it is an indication it is time to replace the battery. Cheap batteries are usually the cause of this and Honda uses one of the worse.
That's what I initially thought. 2 year old Diehard tested OK though. When I replaced the corroded battrery terminal with the universal one, the acid spewing immediatelly stopped. The metal around the original positive clamp was very thin in one spot and was not readily apparent.
Remember the battery in any automobile plays a major part in voltage regulation. The altenator's voltage regulator can only turn the alternator fully on or fully off. This on-off cycling occurs many times per second; on at around 13.5 V, off at around 14.5V (or whatever Honda's specs are). The constant charging/discharging of the battery helps smooth out these voltage variations.
If you put an oscilliscope on the field terminal, you can see the regulator doing its job. You will see a square wave that turns on and off at seemingly random intervals and for varying times.
With the loose connection the alternator's voltage regulator could not properly sense the battery voltage, causing an overvoltage condition. This will cause electrolysis of the water in the battery which will resuslt in acid spewing out of the caps. I also lost 3 instrument panel bulbs over time.