Thanks to Duaneb55 for sending me the Onan engine manuals. I went through the troubleshooting guides and addressed all the possible issues that would cause "governor hunting". Turned out to be the carburetor. I torn it down, literally poured sandy material out of the bowl, cleaned all ports, etc and re-assembled. Cured the governor hunting and idle problem. Thanks again Duane and Cruizer for all the help!