Ok, finally got back out there and did some more testing. This time we used two heaters, but of which were rated for 1,500 watts. Not a true load bank, but the best I have. We also took great care to follow the instructions in each step. The only exception that I found was adjusting the Gain. The instructions said to turn the Gain clockwise so the target wouldn't hit the magnet when the load is shed. I believe this was a typo and the adjustment was counterclockwise. Turning the Gain clockwise only resulted in the engine being unstable. I had to turn it quite a ways back to get the target to not hit.
Step #13, wide open against the governor was reading 310Hz which means the governed speed is a bit low. I don't see this as being a major problem. Other speed readings were set dead nuts on and were cross checked after each adjustment.
F-G no load: 26 (24 spec) load: 26 (24 spec)
J-H no load: 8.0 (5.3 spec) load: 13.5 (11 spec)
D-E no load: 0 (0 spec) load:: 5 (0 spec)
A-B no load: 175 (178 +/- 2 spec) load: 188 (193 +/- 2 spec)
B-C no load: 175 (178 +/- 2 spec) load: 186 (193 +/- 2 spec)
C-A no load: 175 (178 +/- 2 spec) load: 187 (193 +/- 2 spec)
After adjustment, the unit still does not shut down, although the idle speed is noticeably lower. Although I previously had a 5/16" gap, this time I had to adjust the rod to achieve a 5/16" gap. I forgot to go back after making the other adjustments and recheck the gap.
Try as I might, I could not get a amp reading off the load gauge. Nothing in either AC or DC. I tried disconnecting both wires are reading between them and still got nothing. Set to DC voltage I was able to read 5.4v with full load and 2.4v with no load. At this time the gauge was reading 500 watts regardless of there being a load or not. Earlier I know that I saw it reading 2500 watts with a (supposedly) 3,000 watt load.