So it doesnt first do a rapid move to 0.1? Try running single block and see if it moves up, it is a rapid move up then a feed down at 40 inch per min, which seems fast.

it does a rapid move to .1 then goes down .2  carves up and down as in the g code to different heights . I think  then the real question might be how do you set it up so that one could carve from the top down rather than plunging down to the lowest point  and carving up  to the top. 

The Z height is controlled by your G Code, the code is telling it first to do a rapid move to 0.1, that is line N4. G0 is a rapid move.
The next line you have is saying to go down to -0.2 at a feedrate of 40IPM. G1 is a feed move and F is the feedrate it will go at.
If you are wanting it to go to a different Z then you have to change your code to tell it to go where you want it to go.
Where are you getting your code from?
Hood

It is from bmp2cnc

You will have to try and configure it so that it puts out code the way you want it. Mach is doing exactly what that code is telling it to do.

Hood

Thank you for your help. I am glad to know that mach is working fine . Thank you again