I would most likely say that your generator just had a glob of water in the
gas tank. It got sucked into the carb and when the motor swallowed it, it
choked and died. Or a bit of dirt or varnish may have broke lose and
temporarily plugged a carb port. Or an ignition module may be flaky and it
quits when it get hot. Or it could be a valve that is sticking a bit because
of varnish buildup from disuse. Normally, when you have a direct short, it
will trip the breaker. A little bit of a burnt oil/electrical smell is
normal on a generator that new. It is just baking out the stuff from the
enamel on the coils.
If it puts out proper voltage, just run the dang thing. And run it hard.
That will get it cleaned out if it's a water or varnish problem. If it's a
ignition coil problem, or oil shut off problem it will become evident with a
little hard use.
If the varnish in the carb is really bad, the carb may have to be cleaned.
If it shuts off at a predictable point while warming up, then it's may be a
flaky ignition coil.
Also try disconnecting the low oil kill wire. Just because the oil is full,
doesn't mean that the switch isn't malfunctioning and killing the engine at
And remember. Hard use, as in 5000W or more. Let the engine breath.
And above and beyond all, it could of just been a some water on the spark
plug. Yes, it has a plastic gas tank above it, but it is not water proof by
a long shot. That type of generator is not designed to be ran in the rain in
any way shape or form. In a good rain, that thing will be soaked.
So just run the dang thing and don't worry about it! :-)