Hi John,
Welcome to PixInsight Forum!
I've made mosaics with less than 1% overlapping using the StarAlignment tool. In these difficult cases you may need to define previews covering (roughly) the overlapped areas, on both the reference and target frames, at each mosaic construction step. In this way SA will restrict star matching to the areas covered by the previews. With smaller search areas, uncertainty is largely reduced for the star matching routines, and they usually are able to find enough star pair matches as to perform the image registration task. If your mosaic is 3x5 for example, you should generate two or three partial mosaics (by rows or columns) to minimize accumulated distortion.
Anyway, your approach with StarGenerator is also valid, or even better from the geometrical point of view. The disadvantage, as you've learned, is that the automatic frame adaptation feature does not work in general. In theory it could work if you force a nonzero background on your synthetic star field (you can do this with PixelMath for example, using an expression such as max( $T, 0.1 ) to force a background value of 0.1). The problem is in the 'foreground' part, which in your case is composed of nebular regions that StarGenerator cannot simulate.
Your best option in this case is applying frame adaptation manually with PixelMath and the registration masks generated by StarAlignment. Sounds like a lot of work but it is much easier than what it seems. You have it described in the second video of this series:
http://pixinsight.com/videos/StarAlignment/Mosaic/en.htmlYou can adapt each pair of frames in a few minutes, less if you get some practice --and you'll get practice with 15 frames!
The result will be perfect if your images are well flat fielded.
Let us know how it goes.