xml looks ok and it jogs here fine by keyboard.
When you jog with the keyboard do the DROs on the screen move?
Have you got the correct post address set on the first page of Ports and Pins? Check this by going to Control Panel > System > Hardware > Device manager> then expand the ports list and double click on your LPT port. On the resources page you should see I/O Range, it is the first 4 letters/digits that you want to enter for your port address in Mach.
Hood
Edit forgot this is vista so maybe the location of device manager will be different