The transfer case must be in neutral, this requires the transmission to be in neutral.
The Muncie PTO is neither constant mesh or synchronized meshed so it is engaged with the engine off. Sometimes it won't properly engage so you have to keep pulling on the knob as the engine is started and the output shaft of the transmission moves a bit.
Here is what I do:
Shift transfer case to neutral. Put transmission in neutral. Start the engine while pulling on the PTO engage knob. While still pulling on the knob, shift transmission to drive. You should heat the generator speed up. Now you should have the PTO light on. Flip the governor switch.
The frequency meter only works with the master circuit breaker (top left 3 pole unit) on.
To shut down, turn all circuit breakers off, then turn the governor switch off. Now stop the engine and wait for the generator to stop turning. Push the PTO knob in, shift transmission to neutral and shift transfer case to 2H. Now shift transmission to park and turn off the engine completely and lock steering column.