Thanks David and SKI,
I tested the Honda Gen, again using new cable and still get the rev. polarity. The Honda manual says the neutral and ground are not tied, so the simple plug in tester, shows 1 light which means an open ground. I did power up the AC panel with the Honda, and the battery charger, 1500w Hot Water heater, outlets, and the Microwave all worked fine, .. the plug in tester showed no problems at the outlets.
I tried grounding the generator frame to the boat bonding system, and bonding the third prong of the outlet to the generator, but did not change the Rev. polarity light.
The rev. polarity light goes out when running the HW heater ? strange that when that device is powered up the rev. light goes out.
Well the only other thing to do is tie the neutral and ground inside the generator, but I think I will ask Honda about that first.
Again thank you for your replies, I guess the Honda Gen. just sets off the rev. polarity light due to the floating relationship between the neutral and ground.