Small Engines (Lawn Mowers, etc.): generator, bud bud, recoil starter

Question
Ben
  I have a campbell hausfield generator mod#GN654800AC ser#007803 031197N, equiped with a honda GX390 13.0hp engine ser.#VDE2 GCAA2302270 while running for two hrs., the lights went to a faint glow, I removed the load checked the voltage at the 240volt recep., as well as the 220 and 120volt duplex recep., and voltage appeard normal, as I shut it down, and just before it came to a stop, a metal to metal sound was comming from inside the engine,I checked the oil, and oil level was full,I turned the engine over with the recoil starter and could hear something metal to to metal just inside, and right behind the recoil starter, the engine will still start up and idle without hisitation but once a load with the 240volt recp.is applied, the engine sounds like something is loose! and of corse this also effects the performance of full voltage, a bad diode would effect the voltage, but could this be a bad bearing? not allowing the engine to run smoothly? could you give me a good starting point?.
         Thanks,
         Bud

Answer
Bud
Sounds like you may have a a loose rotor bolt check to make sure that the rotor is tight what happens when there is no load the voltage is good then when you apply a load the voltage will drop as the rotor can not keep up.The rotor may be rubbing against the stator,i wouldn't run it anymore till you check this.