Hi wjd7 and itsmoked
You can try connecting a 12 volt car battery across the brushes to exite the field. If your generator output is less than half rated voltage, you can go to 24 volts.
Many small generators will take double or more voltage on the field between no load and full load so don't be surprised if the voltage drops when you put a load on it.
The car battery (or two) should give you a steady output. Disconnet the existing regulator first. Put a load on the set if you can and watch for signs of trouble. Fluctuating voltage, fluctuating current, over heating, smoke.
Re; the voltage regulator. Most of the sets that I see in this size range have a brushless exciter. The voltage regulator supplies and controls the field of the brushless exciter. The brushless exciter supplies the energy for the main rotating field.
This looks like it is feeding the field directly. That is probably more power than standard AVRs can handle.
I suspect that the winding is a dedicated exitation winding and the regulator is controlling the current to the rectifiers and to the field.
The point of this is that it may not be wise to replace the regulator with anything but an original part.
A number that sticks in my head is 16 Ohms. Many AVRs have a warning notice that the LOAD MUST BE 16 OHMS OR MORE. This is the load on the AVR, or the field resistance.
It's possible that a diode or SCR is blown in the regulator and it's working on half wave.
Like itsmoked said probably the regulator.
A couple of other things you can try;
Measure the voltage across the voltage regulator output. Zero volts or close to it may mean that the regulator is trying it's best but there is a problem with the field or the dedicated winding in the generator.
If there is a fairly high voltage across the regulator and the generator voltage is low, the regulator may be bad. A lot of regulators without Under Frequency Roll Off (UFRO) have a tendency to fail if the're operated at reduced frequency. If you don't have a 50Hz./60Hz. jumper, connection or setting of some sort, you probably don't have UFRO.
Try the battery(ies) and measure the voltage and tell us what you find .
yours