This invention overcomes the disadvantages of the prior art by providing a power generating system particularly suitable for field use in remote locations, which is fuel-efficient, relatively quiet, tolerant of dust, capable of operating on low grade logistics and diesel-like fuels and capable of generating between 500 W and 2 KW of continuous electrical power. This generator employs a miniature internal combustion engine/generator (MICE) having a piston moving within a cylinder arranged for two-cycle operation, and an interconnected, axially arranged piston shaft that oscillates an alternator coil within a magnetic core. The piston shaft is opposed by a strong, multiple-helix spring. The cylinder head, in which the piston operates, is cooled by moving (electrically pumped) fluid in a cooling head, or by another heat-transfer mechanism. The MICE generator's intake arrangement includes a preheater heated by a heated fluid flow thereon. The MICE generator is vibration-isolated using a base that supports the MICE on a plurality of soft coil springs. The MICE generator is encased in an acoustic enclosure having a shell composed of sheet metal or another stiff material extending from the base plate and being covered by a top side. Holes in the enclosure top are covered by porous discs that allow exhaust gasses from the internal muffler to pass therethrough. The acoustic enclosure resides in a large, typically portable, external package enclosure.