Thanks dude1 and rcaffin for your help.
I changed the step frequency in the smooth stepper settings as per the recommended:
X axis: 128 kHz
Z axis: 32 Khz
A axis 64 Khz
I then went into the motor tuning settings and set to the max velocity and then set my acceleration, they seem smoother and a bit faster, so I'll happy with that.
I also tested my original program again using v040 (I know I shouldn't bother, and just try to figure out the feed hold issue for v062, I'm just curious).
BTW, with v062, if I'm running a basic program I press feed hold, it displays PAUSE then pauses a second or two later, the small delay is fine, but with a more involved program (coincidence maybe???) I press the space bar and nothing, it doesn't even display pause, no matter how many times I press it, I would love to figure out this pausing issue, it would solve all of my problems......I'm pretty sure my wife would disagree though!

Oh I also forgot to ask, if I change the kernal speed to 25 kHz, will I need to re-tune the motors?
This below program works...;Annular plunge grinding example with finishing cycle
#1=48
#2=47.5
#3=6
#4=2
#5=24
#6=0
#7=4
#8=-1874919423
#9=0
#10=0.1
#11=0.025
#12=12000
#13=3500
#14=0.475
#15=5
#21=10
#23=0
#24=0
#25=1
#28=3
#16=1.5
#17=0.5
#18=[[#6/[#5+#3]]*#3]
#20=3
#22=-1.1520495086364e-006
#26=[360/#7]
#27=[#22*#4]
#29=5
G90 G21 G57
G18
M208
G90 G0 Z0.
G4 P2
G0 X[#2+#11+#17+#21]
A0
M98 P1 L#20
G90 G0 Z0.
A0.
G0 X[#2+#11+#21+0.3]
M98 P4 L#29
G90 G0 X[#2+#11+#17+#21]
M208
Z0. A0
G0 X[#1+#21]
G4 P1
M18
M16
M30
O1
G91 G0 X[#21-[#21*2]]
M98 P2 L#15
G91 G1 A720 F#12
G1 X[#17+#21] F300 ;
IF I USE G0, IT WOULD JOLT X AXIS OUT AND TRIP THE SERVOG0 X[[#18-[#18*2]]*#4] Z[[#3*#4]-[[#3*#4]*2]] A[[#22-[#22*2]]*#4]
M99
O2
G91 G1 X[#10-[#10*2]] A360 F#12
M98 P3 L1
M99
O3
M99
O4
G91 G0 X[#21-[#21*2]]
M98 P5 L1
G0 X#21;
THIS LINE SHOULD ALSO TRIP OUT THE SERVO, BUT DOESN'T?
G0 X[#18-[#18*2]] Z[[#3*#25]-[[#3*#25]*2]] A[#22-[#22*2]]
M99
O5
G91 G1 X[[#11-[#11*2]]-.3] A360 F#13
M98 P6 L#28
G91 G1 X[#9+0.3] A#26 F#13
G91 G0 X#11
M99
O6
G91 G1 A360. F#13
M99