This is somewhat a mix of other forum games that I jumbled together. Basically, you will say something that the generator makes, and the next poster will describe how to use it. Be creative, don't describe a mundane, ordinary use for an object.

Example:
The generator makes a mouse.

I donate it to a charity to end world hunger in cats.

Begin:
The generator makes a towel.

I wrap it around my head to avoid being eaten by the Ravenous Bugblatter Beast of Traal.

The generator makes a sewing kit.

I use it to stitch together the remains of several Chinchillas into...Last of the Chinchillas!

The generator makes a chicken sandwich.

I feed it to The Heavy to fuel his bloody rampage.

The generator makes a Blue Oyster Cult CD.

I give it to Will Ferrell and he works his magic with a skit.

The generator makes a wad of cash

I throw it at an alien invader, somehow mangling his face.

The generator makes a taco.

I throw it into the furnace to fuel my steam-powered mech.

The generator makes an empty glass bottle.

I break it & use it to take on the rabid Twilight fangirl hunting me down.

The generator generates a nice hot bowl of Trog meat & irradiated water.

I mix them together and produce a new form of contraceptive pill.

The generator spawns a box of grenades.

I use them to help me think about things.

The generator spawns a very small pebble.

I stick it up my nose. Yep.

The generator spawns a Soul Edge.

I throw it randomly, and it bounces around the room before hitting the "generate" button on the generator.

The generator spawns an inflatable doll dressed up as a guantanamo bay inmate.

I kill it with fire

The Generator spawns a generator.

TIME PARADOX!

The generator spawns a mushroom.

I hold just too high for Mario to jump to while he segregated his brother Luigi years ago so now he is all alone

I make a generator that generates messiah's

I nail it to a cross.

The generator spawns two bananas, an ice pick, and a wooden bucket.

I use them to craft an internal combustion engine. What do you mean, "how"?

The generator makes a blood stained cereal bowl.

I fill it with cereal, eat it, and contract hepatitis.

The generator spawns a save point.

I yell SAVE GAME and go on a bloody rampage

The generator Spawns The Terminator.

i destroy it in a volcano

the generator spawns mount doom

I use it to take over the world, only to have it taken back by some midget with a girly ring.

The generator spawns GLaDos.

I throw the companion cube at her. It is completely ineffective.

The generator makes a plasma cannon with a pancake duct-taped to it.

I eat the plasma cannon and eradicate some races with the pancake.

The generator spawns a spoony bard.

I look at the spoony bard very curiously. I kick it. I start to make animalistic noises as i try to figure out what it is. I destroy it.

The generator spawns a clone of yourself

I hand him the second controller and we play Left 4 Dead until our brains pour out of our ears like oatmeal.

The generator makes a giant ant.

I hop on his back and we soar through the air, consuming massive amounts of cake and collecting stars.

The generator spawns a knife-wrench.

What can't i do with a knife wrench? I fix the generator with the knife wrench so it spawns another me with another knife wrench. We get into a knife wrench fight and i win. Go figure.

The Generator spawns a blackhole

Oh MY GOOOoooooooooooooooo...

The generator spawns a rapier doused in kerosene.

I light the rapier on fire and it melts and burns itself into my hand.

The Generator spawns a Guitar

I smash it over the generator, which activates its defences and fires rockets at me.

The generator spawns NeonBob.

whales get nuked

the generator spawns an escapist admin

More bans take place.

The generator spawns an ink grenade.

i use it to steal a lot of money from a foreign bank

the generator spawns the death of kittens (not to be confused by dead kittens)

No. Kittens must not die. They are too adorable. I kill that incarnation of death.

The generator spawns an insect with a laser cannon attachment on it's back.

i squish the insect with my boot

the generator spawns itself