Jeff,
Their may be some filtering somewhere in the isolation board that is working in your favour. From what you are experiencing it appears that some filtering is occurring, but not enough, thus the pulsing.
Try this. Go into the spindle set-up tab in Mach3 and change the PWM frequency to 500Hz. If that doesn't smooth it out, increase it to 1000Hz. Let me know how you go.
There is a downside to increasing the PWM frequency though. As you increase it, you loose resolution (the number of voltage values you can generate).
THe number of volytage steps you can get out Mach is governed by;
Number of Voltage steps = Mach3 kernel speed/PWM frequency
If you are using a kernel speed of say 25KHz and you set the PWM frequency to 50, then you get 500 steps between 0V and your Maximum voltage(10V)
So if you increase the PWM frequency to 500, you will only have 50 steps. This may be fine for your application. To get better resolution, you can change your Mach3 kernel speed. Say from 25KHz to 60KHz, or 100KHz assuming your PC is powerful enough.
Anyway let me know what you find.
Cheers,
Peter.