Am I correct in thinging most of the AC items like microwane, outlets, and tv are not working if not plugged in and on generator?
I think it will be a problem before the inverter as there is a transfer switch which should choose power from the cord or the generator and it is about the first thing after the cords from each.
This is a snip of the drawing of your transfer switch with some markup.
Click this to get a better view.
If I am understanding correctly, the power when plugged in comes in as the green lines, through the transfer switch and out to the load center (breaker box) But when you go to the generator the red line doesn't get passed on through?? It is a switch which connects the working power on through to the cable to the breakers but it is not doing it.
The switch might be bad but one of the more common things we hear about is the screws holding the wires get loose and heat up or melt things at times!
A look inside the switch for anything odd and to tighten those screws would be my move!
A meter and chacking the voltage comming from the generator to the switch and on out at the cable going to the breakers, might tell if it is working right?