Hi Kurt,
Did the problem start after you replaced the spindle cable or before?
When you say 'no binding' I assume , with no power ont ehstepeprs, that you can wind the axis up and down, by hand, freely?
I'm not sure 'foil braiding' is the best to use. I have always used 'braided screen' cable...might be worth a look...
Did you earth the screen at both ends? You are supposed to according to Danfoss. This is the only case where you do, as far a I know.
Are your motor cables screened? Maybe the Z axis is being affected because it is the closest to the spindle cable?
Where is your VFD mounted? In the control box or in its own box?
These problems are tricky....All I can suggest change one thing at a time until you discover what the cause is....
Steve