I have the same generator, and after the break in period, and after not always running smoothly, I swapped the spark plug out for an NGK BP5ES3, and it purrs now. It seemed to really make a big difference. I actually recently swapped out all of my small engine plugs for ngk plugs, and they all seem to like them much better. The only other thing that I can think, is that the fuel should be very fresh. Thats great that you can get ethanol free gas. In my area they have outlawed it, including the surrounding two states. They state governments actually passed statutes requiring a percentage of ethanol in fuel at the pump. The only gas that I can get without it is in the small cans at Homedepot, and Tractor Supply, but that is almost double the cost at the pump. I use Startron, and it has been an absolute lifesaver. I also switched to Stihl synthetic in all of my 50:1 2 cycle engines, and that has also seemed to help out quite a bit. I was schooled, if you will, after returning a new saw years ago, that I could not keep running. They private dealer, said that they see multiple saws, and two cycle engines every week that people run old fuel in, with cheap mixed oil, and it always causes issues. I am not sure why 2 cycle engines are so fussy, but I now only keep a gallon on hand of fresh gas, and I have not had an issue at all with my 2 cycle engines, and I have 6 of them. That may not be your issue at all, and it sounds like you are doing the right things, so it may be a dud, but try the plug if you haven't. My brother has the same Generator, and he uses it on his boat, and he recently (last week) had the same issue. he changed the plug, and it fixed the problem.
The only other issue I had was my starter cord broke, and I found out that it is a complete piece attached to the cover, but they are cheap on ebay brand new, so I bought one for around $15, and it works great again. If you don't have a warranty, the carbs are very inexpensive on ebay also.
Good luck with it, and let us know!
I was hoping, based on comments on here, that the little 900w 2-cycle generator would be a "don't suck", but now having had one for 6 months, I'm not too sure! I have used non-ethanol, fresh fuel in it exclusively, but it is almost impossible to start. If I remove the air cleaner cover and drizzle in a bit of fuel, it kicks right off. I shut off the fuel valve and run the carb dry whenever I am done using it. It seems to run ok after it starts. Maybe a little lean. So I'm suspecting something wrong in the choke/low speed carb circuit, or it may be that the fuel on/off valve is so restricted that it takes a long time to slowly drizzle a bowl full. Guess it's going back for a trade-in on another.
- Jay