I'll give you my less than scientific thoughts on it.

Your situation sounds similar to mine and I live in hurricane country...so I have some experience with multi-day power outages.
With a vehicle power source you're limited to the peak output of the alternator, usually around 120 amps at 12 V. At 120 volts you'll get 12 amps max (some losses, so less usually). In addition you'll be running at idle, so even less. This isn't your solution if you have much draw.
I use a Trace 5500 48V inverter (
http://www.wholesalesolar.com/products. ... w5548.html) attached to four deep cycle batteries. I have 120 amp-hours of battery at 48V which is enough to run lights, TV, fridge, and some ceiling fans for about 20 hrs. It's nice because it's quiet and the wife doesn't have to do anything with it when I'm not there. The inverter isn't hard wired in, but if it were it would act like a UPS...switching from utility feed to inverter feed in 1/40 of a cycle. It can also manage the generator, but again I don't have it wired that way.
I use a 5500 watt diesel generator (air cooled) to charge the batteries and run the house when they are are charging. I use a T240 transformer from trace to balance the legs and take the 240v to 120v for the inverter, which then passes it through to the load while taking some power to charge the batteries. I can charge them in about 4 hours with this method while running whatever I want int the house except the central AC, dryer, and water heater.
I got the trace equipment off ebay for about $1500 total and I think I bought the generator locally for $700 (used, less than 5 hrs). I'm ok with an air cooled 3600 RPM generator as I don't run it much and will probably never wear it out.
Some other thoughts...if you are really set on a water cooled, heavy duty solution check out utterpower.com. They sell a CD with lots of useful info and will help you hook together a solution that should work well even under continuous (off-grid) use.