Hi Kash4Kev,
All that should be required is to not include the KStepPresent = TRUE; statement. It is not required to use KStep as a simple Step/Dir drive. It is only required when KStep is connected to JP7 for the multiplexed opto Isolated inputs to function.Our initialization code includes the line "KStepPresent = TRUE;" This has the undesired effect of making the Encoder A1 & B1 lines outputs! We're not exactly sure why.
Hopefully our phone conversation resolved most of your other issues. Sorry you are having such a hard time.
Regards