I can't make the feed hold do anything useful either.
If you resume, it seems to rapid to the end of the vector that was pause. Not resume at the feed rate. Try that on a circle ! -- Crash..!
My workaround, (which is not a solution) is to go to single step and just finish the vector.
Not sure how you would make the torch go off, but I note the compoud goes off at the end of the single step cycle.
caveat: If the next move is a G0 (rapid) then it gets done at the feedrate instead of the rapid rate.
workaround: Every rapid line needs a G0.
The space bar pause does not work correctly, and with a USB keyboard is usually TOO LATE. I use the PS2 kb-plug.
It would be nice if you could resume with Alt-R after hitting CYCLE stop which is more like cycle ABORT (script terminated is the message), and pause which is BLOCK abort.
Wouldn't it be nice to have a branch instruction in Mach3, or have I missed something? Subroutines, but no branch? How hard is that?