Thanks Iwire

I'm sure that there are many sharp people here, I'm here to learn as much from them as I can, and maybe share a little as I go, this is how I think it works from what I see so far.

I made the changes you requested to the picture you posted but I could not paste it. Maybe I did something wrong or maybe it was something I didn't do ?.

Lets try this. Lets say we have a small leakage to ground on the load in your picture ( a old motor maybe ), lets say its leaking to A phase. This leakage would follow the ground trying to return to its source . It would follow the ground path back to the main service to the bonding jumper, then on to the neutral, follow this back until it was cancel out by B phase at the generator. This system would work fine until someone open the neutral at the main service, ( maybe a main GFI test or a service upgrade ). When they turn main power off the generator would come on ( ATS in the 1st post ). There is no X0 bond at the ATS, it would be using the main service X0 bond for its ground path. Someone then opens this path and we hope they just get a shock... But that depends on how they open it and how much leakage we had.