Low voltage generator is putting out low voltage.

Okay I see your answer. I will research this tomorrow but my first instinct is that two volts is probably right. The pulses are low voltage and trigger the spark electronically using low voltage power which is then amplified. .

You do NOT want to stop any generator whilst under load, doing so will tear up the voltage regulator and or capacitor. If you insist on doing this, on the AC output side add a transfer switch to disconenct loads first, or feed through a breaker so you can manually do the same, then just put a low voltage kill switch parallel to the generator local control

if there is output but the voltage is low check the voltage regulator

Most low voltage conditions on generators are simply due to a low engine rpm. Most modern generators are 2- pole windings. So your engine rpm should theoretically run @ 3600 rpm. which will produce 120/240 volts @ 60 HZ. In actuality You want to set your rpm's @ Approx. 3720rpm no load. About 62.5 Hz. Without getting to technical this will give you your desired 120/240 volts loaded. Hope this helps.

In what position is the switch under the voltmeter and does it read some voltage, may be very low? 
Is the main switch in run position?
Is there a charged battery connected to it?

Power tools CAN draw heavy loads if the voltage or frequency is off. Both of those CAN be a fault of the generator.

Check the frequency by plugging in a clock with a moving second hand and time it for 10 minutes against a quartz clock. ALSO do a voltage check with another voltmeter.

The 5500 Watt generator should hold 40 amps. Power tools with induction motors like some table saws take a large starting load near this value AND would be sensitive to low voltage AND especially low frequency, both of which will cause much higher current draw.

One MIGHT have to resort to put an oscilloscope on the output to make sure the waveform of the AC output is normal..

Your voltage regulator is at fault. Make sure you replace it with the exact same brand name and serial number or you will burn out the generator.Thank you, Dana

wow, that is high, i would think voltage regulator is faulty also

Your RPM's are too high. There is no voltage regulator in coleman generators (generator is actually made by generac) and is 100% dependent on engine speed. There is a screw under the tank when your looking in from the recoil side. It controls the governor arm. Screw it in and it incresses the rpm, out decrease. Plug something in that draws a decent load while setting the rpms since you want it to put out 120 and 240 underload. Your idle voltage does not matter.

Most generators use a flyball type governor within the engine to control rpm; also there is a voltage regulator that tries to maintain voltage at about 115v. The voltage regulator varies the voltage to the armature increasing /adjusting magnetic force. Use a meter with htz or freq setting to adjust engine governor to 60 cycles. When the generator is producing 60 cycles, the engine should be turning 3600 rpm, max power range. At 3600 rpm the voltage should be 115 to 120 volts. Loading the generator will cause governor to try to maintain 3600 rpm. Check engine manual for proper adjustment of gonvernor and linkage. The governor mech should last the life of the engine, however governor system does wear out. Expensive repair. enjoy