I bow down to all of you guys after slapping my forehead! I finally get it. I had the red wire going to the starter going thru the circuit breaker with the generator also on the breaker as shown. This was causing juice to go to the starter from the genny.
I realize now the red wire goes to the center of the solenoid, not the right side. Thanks for all your patience, words and sketches. Now I'll clean up my ring gear once more and move on...slim