Ok, with the massive help of this forum, progress is being made, I have now switched to G28.1 Z setting and rewired my THC for Arc-Ok using the now free probe input pin on my BOB.
However, this is the code I am testing...
G28.1 Z3.00 F250 (probe surface)
G92 Z0 (reset DRO)
G00 Z4.00 (move up by limit switch offset)
G92 Z0 (set zero)
G00 Z5.00 (move to some arbitrary point to measure the torch gap with a 5mm spacer)
Seems nice and simple, if i type it in by hand in the manual screen on Mach, it all works perfectly. leaves the Z DRO at 5.0000mm
But if i run it from a .tap file containing just that code (plus M30 at the end) it works but leaves the Z DRO reading a meaningless 11.4799mm every time???
Can this be fixed???
I have tried putting a delay after the DRO reset lines but no change.
I also have one missing link somewhere - If i untick "allow THC even when not in thc mode" which i guess should be unticked now, I get no action on Z axis even though the diagnostics is showing my THC commands coming in nicely?

?
Pressing the screen THC button does nothing.