Newbie- G177 - Tool Clearance? (DX32 Canned)

[GCoded]

Situation:
Bridgeport Explorer DX32
.678 2F undercut EM.
1" hole 1.9" deep.
Need to make the ID 1.278 along with an ID of 1.310 from 1.640 to 1.9.

Issue: After the first G177 the tool comes all the way out of the part and then back in again cutting the larger ID into the existing smaller ID as it plunges down.

How do I get the tool to clear the first smaller ID when going back into the part? I've tried P clearance of .200 and 0 and they made no difference.
From what I've read P clearance is unsigned. What am I not understanding?

Here's the code I'm using (no P clearance).
N270G177X.000Y-1.190Z-.105R.638Z1.9Z.125P.100P.0P.005F5.0F5.0F5.0;
N275G177X.000Y-1.190Z-1.640R.655Z.260Z.125P.100P.0P.005F5.0F5.0F5.0;

[GCoded]

I guess I could use the G177 for the smaller ID and then use G79 to get the larger ID within the part. That way I can G0 to get the tool in there without hitting anything.

If anyone has any other thoughts I'd appreciate it.
Thanks,
nOOb.