This heater has 2 type gas valves one valve has the thermostat built into it. No wiring needed for that puppy. Looks like this:
So I am guessing that one ain't you.
Your heater must use a millivolt gas valve with the 2 wire wall thermostat. The pilot generator does 2 things. It holds the pilot on and it produces voltages that operate the solenoid and open and close the valve when the room thermostat makes contacts. So what goes wrong with these? The pilot generator will sometimes hold the pilot flame but whn the 2 wires are touched together or you tun on the wall thermostat the whole thang just dies. That my friend is a weak thermopile generator. The other thang that goes wrong is the solenoid on the gas valve is open and therefore the gas won't come on. Their is also a fuse mounted on there that melts and kills the magnet that the generator holds in for the pilot.
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