When you first load Mach, the abnormal condition it is referring to is that you haven't homed the machine. (this is assuming you previously clicked the "set normal condition" after homing.) Just home it out and it should turn green by itself.
If you click "set normal condition" before you home the machine, then a homed machine would be abnormal. The reason why you keep going in circles is because you keep changing the normal parameters from "normal is homed" to "normal is not homed"