sparkey....,
I haven't used Deskengrave for quite a long time so don't remember specifics on it's code generation.
One thing is that for letters, there are no arc's and so you get a bunch of straight lines. DeskCNC will output threading code uisng G33 which won't work in Mach. I am not bad mouthing the software, but rather, like Hood said, it may post code that is not acceptable for Mach .
Like any CAM program, it has a post processor meant for it's associated recieving software. Thus, what the "magic wand" does for one program is unacceptable for another. For arc's, you may want to have a read of the ARC Motion Tutorial in Memebers Docs. Figure 9 gives a flavor of just one Gcode.
RICH