Will have a look at the xml in a few but when you say "I start my spindle through the mechanical lever (so old fasioned)" I presume that is outwith Mach so are you telling Mach the spindle has started by having a M3 in the code or pressing the spindle button? If not then no spindle speed will be seen and threading wont work as Mach needs to be told to look for the spindle speed.
Hood

Ok first thing is Ports and Pins, Motor Outputs, you have Spindle set to Pin 10 for step, you cant have that as it is an input pin and I think you control the spindle on/off manually anyway so just disable spindle all together on that page if that is the case. Next on your outputs page you have Output 2 set to Pin 10, you cant have that as previously mentioned it is an input pin, just place 0 in that box instead, same goes for Outut 1, you can just enter 0 for that as well as I dont think you are using it.
See how you go with changing these settings and also remember to tell Mach the spindle has started (M3 in code or press Spindle button) and hopefully you will see a spindle speed and threading will work

Hood

Hood
Redone ports and pins.
As you can see from my screenshot there is an m03 in the code and I have manually started the spindle  The s true box shows a build up of revs and the dwell active red light is on. Then it drops to zero and the dwell active light goes off and the yellow bar appears.
The same happens with no programm and just pressing spindle start.
Latest xml attached as well.
Graham

Config menu then General Config and over to the right at the top you will see Index Debounce, its at 100 so is unlikely to work, set it to 0 and see.
Hood

Hood
Debounce set at zero, no change to symptons,
Graham

Ok then it would seem your index signal is not getting to Mach. A scope would soon let you know if its working but I would imagine you dont have one. I am thinking a volt meter should work though if you have one. If you connect the meter between the input and the Gnd terminal and move the spindle so the slot is in the sensor you should see 5v I would think.
If you can do that and see and we can take it from there.
Hood

Hood
4.98 volt at supply side to sensor cell.
4.43 volt on output side when slot is opposite cell and when it is rotated away.
Graham

Cant see how you would get an output when its blanked but then again I am no electronics expert so maybe. Dont think I have one here to test but should have one at the workshop. Can you unhook the connector from the BOB and see if its the same on the signal pin, may be the Bob that is supplying the voltage.
Hood

Hood
Just the same.
Will take a photo of connections etc and post later

Graham

Ok will try and remember to look for an opto to test at the workshop tomorrow. I think I should still have one there anyway, dont use them now as I use the encoders on the spindle motors but I never throw anything away
Hood