Extending the exhaust as already suggested, may help. I've done it with mine but I'm not sure yet if it's done more than move the carbon monoxide further from the house. I've heard of the water bucket trick but keep in mind that will add back-pressure to your unit which may, or may not, make a difference in performance. Variations on this include running the exhaust into a 'dry-well' filled with gravel or adding another small muffler at the end of the run.
I also put a piece of plywood about a foot from the genny as a noise-screen. I think this helps deflect a bit of the noise. It might be more effective if I added a piece of foam to the back of it.
Good luck!
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