Old generator is a 120/240v 5kW Coleman from about 1985. It has a 3-wire outlet. No evidence suggests it killed anyone including me but maybe we were all lucky. New generator (2014) has 4 wire outlet.
Problem with this thread is, I proposed a modification, was advised wrong (use 2 hots & ground, isolate neutral). 240v seemed fine but 120v didn't work, so I suspected something was wrong. I read more into post #7 (DaveM7040) and changed accordingly to a selectable Neutral-bond. Now the 120v outlets (and the 240v) work on my extension cord. And the generator is restored to original by unplugging the bonded-ground plug.
It's currently wired per post #22 and I think its all good. If anyone is to offer further advice please refer ONLY to post #22 otherwise we're going in circles & putting bad info on the TbN forum.
I think the only remaining question is whether a 120v tool, with a grounded metal case is used on the one leg (a 120v outlet on 120/240v ext cord) poses significantly more danger than it did for 30 years on the 1985 Coleman.