50 champion generator plugged into a Generlink 40 Amp Meter Mounted Transfer Switch

I went to test it out again, hoping elves would've fixed it while I was gone, but no such luck. As I was playing with the oil burner, I flicked on/off the emergency shutoff switch and got shocked. This led me to check the ground wires. The transfer station looked ok, so I went outside to check the power inlet. I was cautiously happy when I saw that the ground from the building wire had come loose due to some really shoddy workmanship. I reconnected and secured the ground and everything worked just fine after that :)

Thanks Tester and everyone else for all the assistance. It was greatly appreciated.

That does indeed describe a properly engineered 50 amp device.

It is normal for appliances to use slightly lighter gauge wire than would be used in building wiring. You can observe that inside electric ranges, dryers, and water heaters, where you will see the 10 or 8 gauge incoming supply wires to a terminal and then 12 or 14 gauge wire going from the terminal block off to the components.

Because the wire is inside an enclosed box, and is not tightly bundled or surrounded by thermal insulating materials, its elevated temperature will not cause any danger. It will run a little warm at peak current, but be far below "hot". The same is not acceptable inside dwelling walls were it will be in contact with wood, fiberglass, cellulose insulation, etc.

As for standards, I have determined this is beyond the scope of the NEC and falls into the domain of the National Fire Protection Association (NFPA) standards. That seems to cost $$ to view.