Kolias:
Take Ger21's advice and don't run the VB code any more until you get the input working. You're just asking for a broken tool or machine damage.
Simply put , the light should be normally off and if you touch the clip lead to the plate you should see the light go on. It should be off otherwise.
Did you install the pull-up resistor between pin10 (or whatever your using) and 5v?
Some BOB's need this resistor. The resistor should be something like 1k.
With the resistor in place you have a setup for active LOW to trigger the input. Make the settings in the software to match active LOW. If making and breaking the connection between the clip and the plate has no effect after that then something is not working with the input you are using. Please report your findings.
BTW you can't use the bare aluminum plate on the metal table or piece of work in the milling machine. Usually the plate is a piece of PC board (copper plate insulated from the table or work). The aluminum plate would be ok for a router I guess where you are always placing it on wood.
When you get that working you should get the code from CNC zone forum subject "aussie tool setter" where it was developed. Here is a link to some code.
http://www.cnczone.com/forums/cnc_wood_router_project_log/36099-another_aussie_auto_tool_zero-35.htmlYou'll need to enter the thickness of your plate in inches. The code is metric. It's well described where to make the change.