You have arrived at the correct answer by a long route.
Calculating steps per unit is easy - your motors need 200 steps per rev, and therefore your 5mm pitch leadscrew gives you 1mm movement for every 40 steps (1/5 of a rev).
Your drives add micropulses to give smoother operation, and as Hood said, and good number to try is eight which seems to give good performance.
If you used 8 then your pulses per mm would be 40 x 8 = 320 - and this is the figure you would put in the motor settings.
You appear to have stumbled upon 16, which is obvoiusly 40 x 16 = 640 steps - which is clearly what the drivers are set to.
It doesn't honestly matter. If you run with that and performance is satisfactory, then use it. Ray mentions rapid speeds - i.e. the speed you want your machine to traverse on a non-cutting move. Yes if your computer and drives will run at that speed so be it. If you find you set your rapid speed, and the axis starts missing or stopping (it stops moving and there is a big whine from the motors) then you may have to alter the DIP switches to the 1/8 setting, and alter your steps per mm to 320. The effect will be the same, it is just that the electronics will not have to operate as fast to give you the actual speed on your table.