This is a DR2424? There is no Xantrex d2424 listed on the web.
http://www.aaasolar.com/ProdLit/Trace/DRManual.pdf
First according to Xantrex' manual, there is a 40 second delay before it switches from inverter to battery charger (page 15). That is to allow the generator to spin up and stabilize. It will work as an inverter or charger but not both at the same time.
Second, the peak voltage of the generator determines if it will charge you batteries. (page 20) There is a 10 to one step down on the charge circuit transformer, so if the peak voltage of your genset is lower than 130 it won't work at all.
Third, I hope you didn't do this, but if you hooked up your genset to the ac output side, you must reset the Trace inverter. If you do that too many times it will blow the inverter. (page 14).