Well it really is a combination of things that make it all work.
You MUST tell Sheet Cam via the post how much the Z needs to lift once the Zhome trips. Then when that happens MACH3 moves to the defined height to start.
ONCE the arc starts THEN the DTHC takes over the Z and tells mach3 where to go based on arc voltage.
Are you using the G28.1 method OR the G31 method of homing the Z??
What does the first 20 or so lines of Gcode look like

(;-) TP