The relay outputs and analog control voltage from the PMDX-107 are isolated from the PCgnd and no connection to PCgnd is needed. The ACM signal on the VFD is the ground reference for the analog control signal.
The PMDX-107 has an on-board power inverter and can operate in two wire mode without the VFD 10v+ signal from the VFD. There is a DIP switch setting to control to select 5 volt or 10 volt mode when operating as a two wire interface. If the 10v+ signal is connected, then it will override the switch setting and 10 volt analog signal will be generated.
In all cases, we recommend that you use the Test button on the PMDX-107 to diagnose wiring and VFD configuration because the Test modes are internal to the PMDX-107 and are not affected by the Mach and SmoothStepper software configuration.
The SmoothStepper PWM management in Mach3 was a little unusual in that it REQUIRES a setting for acceleration of the spindle. If it is left at zero, then the spindle will not spin up. I am not sure if this is true of the Mach4 SmoothStepper plugin.
Documentation about the Mach3 / SmoothStepper / PMDX-107 setup can be found in this application note:
http://www.pmdx.com/Doc/AN002_PWMSpindleSmoothStepper_02.pdf