Back to the thread, using an AC generator for a dyno -- the measurement of output power from the generator is the tricky part. "Normal" watt/amp meters can be fooled by the varying frequency output that you will be generating (unless you only plan to operate at the motor/generator synchronous speed -- 3600 rpm for most?). Not sure that the voltage won't vary with speed as well? You'll need to measure voltage/current with high speed o-scope or DAQ card. Putting a 1 to 4-kw variable load onto the generator should be fairly easy: go buy a bunch of lamp sockets at the hardware store, along with a supply of a range of bulbs of varying wattages. Wire all the sockets onto a board, and add/subtract load by screwing in or removing lamps. Remember, though, you may not be able to measure output power by summing the lamp wattages.