Hi, Gilletttom
Your dxf file is zero in size, Re-post it you'll need to re-name it though to post it.
I do see what your talking about, There are a bunch of x axis and Z axis move's on the same line's in the G code file you posted.
Look in Mach3 & LazyCam Under "Help", What version's are you using.?
Back plotted your G code file in/with nc-plot and generated code with similar values you used, See first attached file.
Used LazyCam ver 3.00.2 and it seems to function OK.
We can get in to better way's to setup LC after were on the same page and at least get you going in the right direction..
Chip