well, just to circle back and provide what I found to be the problem.....hopefully to help someone else figure out a similar problem.....
It was loose wires. On the transfer switch. Anybody know where that switch (relay) is?????
The breaker panel has a steel "divider" spot welded in......to separate the low voltage fuse panel from the high voltage wiring. The transfer switch is, unfortunately, BEHIND this steel divider. (talk about lack of serviceability!) Using a mirror and flashlight, I could clearly see the melted, burned insulation and connectors on the relay.....one of them was burned all the way thru and just bouncing around back there.
I am very thankful that the circuit breakers on the generator did their job......and prevented a potential fire.
So, drastic measures were taken.
Got it home and broke out the sawzall to cut thru the spot welds, after disconnecting the low voltage circuit board and tying the wires up and out of the way. Then, had to very forcefully bend the divider out of the enclosure, to gain access to the relay. I thought I may have to replace the relay, but the contacts were all good, coil was good, so I just re-wired all of the connections on the relay. I went and bought high quality "swedge" type wire terminals, so as not to use the cheaper automotive type crimp connections. Cleaned up all the contact surfaces, used locktite on all the screws, fired it up and all was well.
I then bent the divider back in to place, and used big pop-rivets to hold it in place. Put the low voltage board back in and reconnected all the wires. Done deal, and it's been working fine since....
I'm still shaking my head at the design of the electrical panel.....how in the world would one replace the transfer switch if need be? Even changing out the entire electrical panel box would be a challenge without access to the screws on the relay........ugh!