Apart from the out 1 led flashing red. the only other thing that I can see that may not be correct is the led lights on the Port 1 pins current state is showing the first 3 led`s are black followed by 5 lit (green) 4 black, that may be perfectly ok I just mentioning it incase it is wrong

I think I have done it now by disabling spindle errors have stopped. Many thanks to you for your help, hopefully I will get good at this but I expect I will be begging on the forum for a while yet.

The diagnostic screen shows output 1 flashing red in the Output Signals section.

Not sure why you've assumed this is an error. All it's telling you is that the spindle pin is active. i.e. the spindle will be on if it's wired appropriately.

You've already said it's not following the toolpath. But I asked what it IS doing. i.e. it's apparently NOT doing what you want so I was hoping you'd tell me what it IS doing that you DON'T want. Remember I can't see what you can see so unless you describe it in detail I can't really help much.

it was`nt following the toolpath until I disabled spindle. If I enable spindle it stops following toolpath? cutter moves from left to right and drill moves up and down but does not travel up and down along the bed length with spindle enabled.
It seems to all work ok with it disabled and error lights also go off.

You likely have your spindle output set to the same pin as your Y step pulse..

Art