ok made a test on my mill (cs-lab Motion Controller)
what i did:
1. loaded Plasma Screen
2. configured three Inputs Torch ON - Torch UP - Torch DWN
3. Turnen THC ON (Programm run Screen), also set Config -> Ports&pins -> Mill Option -> Allow THC up/down
4. Set THC Min and THC Max to -20 and +20 (mm i am working in metric, therefor i had to modify Screen dro's to see the sign)
5. then i was able to drive Z axis up and down within THC Max / Min range
hope it helps.
Thomas
BTW are you running Mach3 in Demo? remember that THC is not working in DEMO, but can't find this anymore.