coleman generator?
Most generators generate an approximation of a 120 volt sine wave. It can vary in voltage and/or frequency, and almost always has a very noisy 'stepped' wave form. This low quality power can cause some electronic equipment annoyance (buzzing flourescent lights, computer confusion, etc), failure to work (my VCR/TV) or even, in some cases, possibly damage. The 'Inverter' generators by Honda (and a few others) run the generated power through circuitry which results in power at least as clean as you get off the power grid (and in many cases, better
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Honda EU series generators are also fuel efficient and much quieter than other generators, due in part to their ability to run slower during times of low demand. Plus, Honda just seems to be better quality than the junkers. Sort of like choosing between a Proto screwdriver for $12 or a chinese import for 79 cents. Both will do the job, but you'll be happier with the Proto in the long run...
An 'inverter' is, by definition, a device which converts DC current to AC current. Those things which you plug into your cigarette lighter and then plug a small 120v appliance into, for instance. It does not appear that Honda's 'Inverter' generators actually have an inverter in them, though. Written by a marketing person rather than an engineer, apparently...