Grab the nose of the spindle and give it a push/pull in the long axis and feel for play in the lower v-bearings of the Y car. There should be no play in it. Check for play due to the motors/pinions not being adjusted into the racks properly.
Use 3D tabs and match your plunge rate to the feedrate, this will allow the tool to flow through the tab sections instead of dwell/up/move/dwell/down/dwell/move....
One other thing, are you using an arcs-inch post?
"He who would trade liberty for some temporary security, deserves neither liberty nor security" - Benjamin Franklin
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