Tell you what, I think you had a siezed engine.
This is not a great fix, but may get you by for some time... I can't guarantee it.
Put heavy Marvel Mystery Oil in the gas (the highest suggested amount). 
Change the genny oil, and put at least a quart of Marvel Mystery Oil in the genny oil (in exchange for a quart of regular oil). 
This stuff is super oil. 
If it continues to do the sounds, work your way the opposite.  
Drain the oil out completely. 
Use Non-Detergent 30 weight oil in the engine.  The idea here is to get micro carbons filling in any possible scratched surfaces between the piston rings and cylinder wall. It's basically a "rig" to get more hours out of an engine.  It actually can last a long time.  IT's not a fix, but it works.