The last report you posted showed that you had Parameter 3 set to 2. Uses Z Home as your Z reference. (this is why its important to always post a fresh report)
Per Marc to set it this way:
Make sure Parameter 3 is set to 0
Shut down your machine
Home your machine
Now go into the Tool Offset page
F1 Setup, F2 Tool, F1 Offset
Press F1 Zref, Press F10 Set Z Ref Here
Now go to parameters
Change Parameter 3 to 2, Press F10 to SAVE
Make sure you have your tool library setup
Then set offset for say Tools 1, 2, 3 PER THE VIDEO. (using the 2" side of the 1-2-3 block like Keith does in the video)
(You will note now in the Tool Offset Screen it says Z Ref Fixed Home)
Then put your part in the vise
Put Tool #1 in the spindle (each tool are in their own holder right??)
Then set your X/Y reference point F1 Setup F1 part Set X F10, then F1 Next Axis, Set Y, F10
Now set Z, F1 (You should be in the Z axis screen)
Then come down to the top of the 2" side of the 1-2-3 block resting on top of your part. Incrementally jog down until the tool just touches the block.
You then enter the part position value of 2.0". enter tool #1 and then press F10 set.
Your DRO for Z should now show 2.0 (the tip of the tool is 2" from the top of the part) and the tool number displayed should be Tool 1
Now tools 2, 3 are automatically now set to the top of your part.
Test it out.
Go into MDI and do an M06 T02 G43 H02 Cycle start
Change to tool 2
Now the display should show T02 H02 (Tool 2 height offset 2)
Jog down tool 2 to just above the top of the part or drag a piece of paper between tool 2 and the top of your part.
Does the DRO for Z show 0? (or very close to it?)
Marty
(Marc, double check me!
)