Did you by any chance see what the kill-o-watt was saying for frequency? If your rpms are 2000, then the gen should have been at about 33-34 hertz. Noticed that the flourescents were not wanting to run, or run dimly at that freq. Inductive ballasts are set for about the right current at 60hz into the tubes, and aren't going to put enough current into them at 33 hertz to run them. Incandescent bulbs don't care, I've run them on everything from DC to 400 hertz. Now 139 volts is a tad high and your bulbs won't last long at that voltage. Your generator is what's called "self excited".
You could put a variable rheostat in one of the leads from the field, and cut the excitation down a bit to get your voltage down around 120 volts. I suspect the regulation on the set is going to be all wacky also, and you'll be adjusting the excitation every time you change loads.Universal tool motors will run at this freq but at about half speed. Do not attempt to run induction motors though, they'll overload and burn out. Only really useful for lights, and resistance loads. Electronic things won't like it too well either. Likely you'll have to derate the generator, the voltage will probably collapse before you get much over 1kw. Your engine is only good for a fraction of it's HP rating idling along at 2000rpm, and may be the limiting factor.
Perry