So after some great info from Roberto from Dyna I was able to diagnose my issues to a bad AMC servo driver. Apparently you should always have a red led on the drives status light until the PLC commands the spindle on then it turns green. This is different then the axis drives which remain green always after initialized. I would only get the red light about 5% of the time. I found the exact part number on Ebay and when I searched the history to see what the average price I couldn't find one that sold in the last few years. I took this a sign and bought it, I probably paid way to much but it comes with a 1 year warranty so whatever. I might be at my limit for replacing electronics I'm not going to throw thousands of dollars at an antiquated system. The motors run so quiet and smooth it would be a shame to replace them, that and how good everyone says the control is the only think keeping me motivated to revive it.
Once I got the new drive I had to match the dip switches and remove a zero ohm resistor at location J1. This changes the inhibit configuration. There is also 4 pots that Roberto said where set at the factory so I didn't bother with them. I'm just gambling they didn't get adjusted from the previous owner.
Sucess!!! once I got the new drive installed everything homed and zeroed like it should no errors. I now had full control of the spindle could run programs and the ATC even works!
Now that I have motion the next step is figure out the auto lube system. I noticed that all the ways are pretty dry I had excess oil in the bottom of the Y ball screw casting valley. Unfortunately this means taking most of the machine apart. I'm kind of glad I did I found some dried oil that was plugging some oil passages in the Gibs and other areas. The system could use a good cleaning and evaluation anyways. I was pleased to find all the surfaces still had the flaking marks so it looks like that machine had very little use. The Y ball screw has a little play in in compared to the X, I'm regretting I didn't check the back lash before I took things apart. This would have been a great time to replace it if need be. Anyone know what the acceptable back lash should be? Also do you think this control has compensation that can be adjusted?
I also took the down time opportunity and took the hard drive out and imaged it for a back up. The image was a whopping 18mb and looks like it runs on Dos6. I bought a IDE to SD card adapter and plan on running the OS off the flash drive. This will also allow me to load G-Code on to the root of the flash drive and bypass the floppy.