Romi C420/ Siemens 802d offsets

I have a Romi C420 (2011 model) lathe that has a Siemens 802D control. I love the machine quality and manual operation, including the sudo-manual MMP taper and radius functions. Now for the problem (besides the bruised forehead from days of beating my head against the wall) In CNC Mode, I can't seem to figure out the Work Coordinate System setup as well as setting the Base Coordinate. Somehow the offsets are wrong which causes a "010720 channel 1 block N40 axis ZM software limit switch" error. Block N40 is "G54 G0 X5 Z5 T00". Is there anyone that can help me in setting up my work and tool offsets?

Thanks
Much
Brian