It's possible you've now discovered why the EEPROM was marked "BAD."
There are a couple things you can try, though. First, does the spindle switch work in the CW position? Next, try executing an M03 or M04 in the Program mode and the spindle switch in the Auto position. This should also turn the spindle on.
Execute an M03 or M04 by going into the Program mode (Mode 3) and then pushing 'N,' '.' (the decimal point), 'Enter.' This puts the control in a pseudo-MDI mode. Now press the 'Event Type' key and then '9' to bring up the M-Function event. Press 'M,' '4' (or '3,' your choice), and 'Enter.'
Now press the Cycle Start key to execute the event (with the spindle switch in the Auto position.) Once you've got the spindle running, you should be able to go back to the Jog mode (Mode 0) and jog the machine with the spindle on.
If after all this, you can't get the spindle to start and you've verified that the bit in the I/O table is still zero, then I would have to assume the EEPROM we've been discussing is faulty. FYI, this EEPROM is programmed with the machine code of the programmable interface. Today, this is referred to generally as the PLC code, ladder logic or something similar. In DynaPath parlance, it's called a PIC or Programmable Interface Control.
I don't have the I/O table with me at the moment. I'll check it later when I have the chance, just to make sure you're looking at the right point.