
Huflung, the way it was explained to me was that when the stepper stalls, there is no way to bring it back to the correct position by adding more current to the motor. Also mach 1 will not recognize the encoder as a feedback signal for closed loop operation. Ex. If the stepper motor stalls while making a deep cut, then no amount of correction can make it overcome the force that made it stall.
Well i know that is probably confusing as hell, i hope someone else can clarify.

Disregard all that stuff above, I just reread huflung's post again and his meaning finally sank in