Ok then it must be the index. Is your spindle RPM showing correctly? Can you uncheck the spindle speed averaging and see if it still is ok.
I now use the spindles encoders index pulse for the index as I use the SS on all machines but previously when using the PP I used Optek OPB916B optos to good effect.
Also is the active state of the prox correct?
Hood

Yes the spindle rpm shows correctly and i have had the averaging unchecked and that made know difference .I tried different states of the pin never made a difference i hooked a meter to the +- of the switch it changes voltage but it seems to be very slow or just not enough change 4.5 volts and down to 2.2 volts but it is not consistent .
 I am also wondering about using the second port on the index ,could this be a problem i can see the led on the switch fire perfectly every time but it does  not match the led on the diag. screen at higher speeds . I do not know what to make of it since it get's the rpm correct?

Ok as a test, can you make sure all is clear so you are cutting air. Go to Config, Ports and Pins then Inputs and enable the emulated for the index and then set a keyboard key for it, maybe the F1. Run the code and if it stops at the threading then start pressing the F1 key as fast as you can and see if it starts threading.

Regarding the LED on the prox and LED in Mach, no thats just the screen cant refresh fast enough to see it.

Oh one more thing, maybe your axis cant move fast enough for the spindle speed in the code and the pitch, maybe try editing the spindle speed to 300 instead of the 1000.

Hood

Just looked at your Z axis and its topping out at 1775mm/min where the code is asking it to do 2000mm/min so that could well be the issue. Dropping the spindle to 500 in code may make it work.
Hood

I used the wizard and wrote a small program ,with a spindle speed around 150 rpm and emulated the signal and it started to thread,so the problem is the signal i can see the led pulse on the screen but for some reason it is not recognizing it .

It is maybe not clean enough for some reason to be used as the index to start the thread.

Take it it did not run at all without you emulating?
Hood

No Hood it would not,i ordered a new hall effect gear tooth sensor ,i had used on my mill hopefully it will read it .

Spindle speed averaging won't cause the problem as it only looks at 8  or so different rpms and then averages them
for the threading planner.

If you are trying to cut a thread and your axis velocity is not fast enough for the feed rate then the threading wizard will
warn you and not post the code. That is the reason i suggested you generate the code from the wizard.
 I didn't remember if the G95 wouldn't be activated though and that may be the case.

Didn't look at the code Hood posted.......you should have around 3 to 5 x the pitch in Z travel so the axis has time to accelerate.
Would seem that with a correct  rpm showing that you should get an index to start the treading.

What version of Mach are you using? ....hopefully somethng greater  than V3.042.32

RICH

My Hall effect works like a charm and was easy to install ( crazy glued the rare earth magnet to the gear ).
How it was attached:
http://www.machsupport.com/forum/index.php/topic,12484.msg82818.html#msg82818

RICH

Hello , thanks' for helping ,the version of mach is V 3.043.037 ,i gave what you suggested a try and i increased my velocity to the z axis gave the z plenty of room to start from ,no change.
 I have ordered a new gear tooth sensor and am waiting it's arrival ,mean time i will hook the scope to the switch and take a look at it .