Your problem area is in
red Code:
%
O5000 (F_CONTOUR_T2.TAP)
( MCV-OP ) (19-AUG-2009)
(SUBROUTINES: O2 .. O0)
G90 G17
G80 G49 G40
G54
G91 G28 Z0
G90
M01
N1 M6 T2
(TOOL -2- MILL DIA 0.125 R0. MM )
G90 G00 G40 G54
G43 H2 D32 G0 X0. Y2.625 S1200 M3 ( you're using D32 not D2 --- your choice )
M8
(----------------------)
(F-CONTOUR-T2 - PROFILE)
(----------------------)
X0. Y2.625
Z0.
G1 Y0. F4
X2.5
Y3.5
G3 X0. Y3.5 R-1.25 ( this is doing a R1.25 arc greater than 180° )
G3 X0. Y3.5 R1.25 ( try this )( for arcs less than or equal to 180°)
G1 Y2.625
G0 X1.75 Y3.25
G3 X1.75 Y3.25 I-0.5 J0.
M30
%
Your program will now give a box with 3 straight lines and a semi-circle lid plus a 1" circle with centre at X1.75 Y1.75 ( not exactly as your drawing )