I'm not a fan of the single point threading scheme used by Mach and it does not surprise me that it is and has been problematic. I have been following the discussion on threading and frankly I don't see how threading will ever be reliable when trying to compensate for spindle speed deviations using a single pulse per rev when the variable speed controllers also have built in compensation that Mach is unaware of, but that's another topic altogether.
I considered your solution of two Mach setups using one to turn and one to index, but that will not suit my purposes. YOu would understand if I explain what I want to accomplish.
The part I have in mind has numerous steps requiring several setups and several programs. One of the problems is (speak of the devil) threading, but that's easy to resolve. The unresolvable problem come sin turing down stock from 3/4" to .4" for about .6" from one end and then cutting flats 90 degrees apart on the OD at the end.
With a turning tool, a drill bit and a tap setup in a plate attached to the mill head, I can turn down the OD, bevel te end, drill a hole and tap the end. Then, with the same setup and thesame program, continue on to index and cut the flats with an end mill in the mill spindle.
There is one last operation that I could also do with the setup, which is cut a slight crown on the other end using a cut-off tool, but I know I will n ot have enough power or rigidity to do that. BUt I'll settle for doing the other stuff in one swoop. It now takes several setups and several programs and manual tapping of the hole.
This is a hobby for me, but I like a challenge and making a 'mini machining center' of sorts would certainly serve that purpose