I have made some progress on this issue this morning. My findings are interesting. The original 6' ground wire I used was 16 gauge stranded copper. This morning I decided that if ATZ worked at the ESS terminal end of that wire, but not at the machine chassis end, then somewhere between those two points something was happening to the signal. So I grabbed a piece of 16 gauge solid bare copper from my copper scrap bucket and connected it from the ESS to the chassis at the closest point, which was about 12" away. It worked. I was able to stop the Z axis with the ATZ input wire at any point on the chassis.
Not being one to just quit at that point because I like to understand what the heck is happening, I continued my investigation. I grabbed a 16 gauge stranded bare copper 1" long and tried it. It worked. I pulled 3 hair fine strands off it and tried that. It worked. I went back to the original 6" copper insulated wire. Won't work. I stripped insulation off 12" of it and tried that. It worked. I tried 6' of bare 16 gauge copper. works up to about 4' then gets flaky and won't work at 6' or on the chassis. Then I cut 12" off the original 6' wire and tried that. It works.
So, my conclusion is that the ESS has to see as pure a ground as it can get to work. The slightest resistance in the wire connecting its ground to the chassis keeps it from working. Don't know why. It shouldn't, but it does. At least I can use the function now.
What I don't understand is why the ESS and Mach lock out the ATZ function if there is not a solid ground at the ESS input. It won't work again until Mach is reset.
Thanks guys for all your input and suggestions!