With the help of Illya and Brian
As an update for all, the script does not go into the PLC Script, it goes in the Screen Load Script.
works sweet now.
thanks guys 
SigLib = {
   --Enable
    [mc.OSIG_MACHINE_ENABLED] = function (state)
        machEnabled = state;
    end,
    --HeadUp 
    [mc.ISIG_INPUT1] = function (on_off)--mc.ISIG_INPUT1
        if( on_off==1 ) then
            -- On
        else
            -- Off
        end
    end,
    --HeadDn 
    [mc.ISIG_INPUT2] = function (state)--mc.ISIG_INPUT2
        if( state == 1 ) then
            -- On 
        else
            -- Off Call A function here if you wanted
        end
    end,
  [mc.ISIG_INPUT3] = function (state)--mc.ISIG_INPUT3 --Used as an enable button
        if( state == 1 ) then
            local inst= mc.mcGetInstance();
            local reg = mc.mcSignalGetHandle(inst, mc.OSIG_MACHINE_ENABLED)
            state = mc.mcSignalGetState(reg);
            if(state == 1)then
                state = 0
            else
                state = 1
            end
            mc.mcCntlEnable(inst, state);
        end
    end,
    [mc.ISIG_INPUT4] = function (state)--mc.ISIG_INPUT2 button to do feed hold
        if( state == 1 ) then
            local inst= mc.mcGetInstance();
            mc.mcCntlFeedHold(inst)
        end
    end,
    [mc.ISIG_INPUT5] = function (state)--mc.ISIG_INPUT5
        if( state == 1 ) then
            CycleStart() --Run my cycle start function
        end
    end,
    [mc.ISIG_INPUT6] = function (state)--mc.ISIG_INPUT6
        local inst = mc.mcGetInstance();--Tool Release Button
        local hsig = mc.mcSignalGetHandle(inst, mc.OSIG_OUTPUT7);
      
        if( state==1 ) then
            --Check to see if the spindle is stopped here
            --Turn On Tool Release (Unclam Tool)
            mc.mcSignalSetState(hsig, 1 );         
       else
           --Turn Off Tool Release (Clamp Tool)
            mc.mcSignalSetState(hsig, 0 );
        end
    end
}
this still goes in the signal script:
if(SigLib[sig] ~= nil)then
SigLib[sig](state);
end