Is the ignition switch stock? If it is, remove all of the wires from it and use an ohmmeter to double check that it is functional and also make sure that you have the wires on the correct terminals. Make sure that all of the wires which were on the switch actually belong on the switch. It seems like you have the ignition wire hot-wired to the main power lead which feeds the generator. Probably at an ignition switch terminal.
