Quoted:
I put a car muffler on my generator and it made no difference at all. It was loud as hell both ways.
The original muffler on some generators is a lot louder than on some others. If your original muffler is doing a decent job, most of the remaining noise is from the engine's valvetrain, cooling fan, carburetor air intake, etc. - and that won't change no matter what aftermarket muffler you install.
Simple way of reducing noise:
The "enclosure" is made of fan-fold 1/4" thick foam insulation - It's often used under vinyl siding, and is available at Home Depot, Lowe's, etc. Leave one side open to provide air flow, pointing it away from your house, neighbors, etc.
It's
been tested, and knocks a solid 5 dB off the noise from all three closed sides.
(images courtesy of professor95)