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The AC startup draw is more than the generator can handle with the other loads that are already on. Startup amperage/wattage is usually double what the 'running' amount is. For example, if you have a 3 KW generator, and the A/C draws 10 amps running, but 20 amps to start, and you are already...

Moisture is in the air, and the metal cools faster than the air does, leading to water settling on the metal parts (hence your shorting problem). You need to store it either inside or in it's own air conditioned space if you cannot seal up all the places as kloppk suggested.