Problem turned out to be in the shutdown system that is on my NL generator. This system have sensors/switches for low
oil pressure,
overheating and something on the
exhaust which I need to ask the
mechanic about the next time I see him as I don't know what that one does.
Anyway, I noticed during my trouble shooting that the generator would run if the "shutdown/bypass" switch was held down (don't do this for long as you can burn out the preheat). I did disconnect the oil pressure
safety switch to see if that was the problem but chickened out before disconnecting the other
safety switches.
Long story short: if your NL genset runs only when the bypass switch is engaged (of course assuming one has oil in the
engine,
water is coming out of the
exhaust, etc.) you may want to try disconnecting the "safety" switches to see if one of them is the problem.