Hi mmurray,
Looks like a good start.
You might try adding Velocity Feed Forward to compensate for drag caused by the high D gain. Start at D x 90us = 40 x 90us = 0.0036
I would have thought I Gain would have helped also. But you have it limited to Max 200 DAC counts. That would prevent it from doing much.
2nd order Low pass filter at 500Hz and Q=1.4 is probably helpful.
I'm guessing the oscillation might be due to some once per rev friction, wobble, unbalance of something such as the worm screw? You might try different speeds and see if it follows a period of time or distance.
3662RPM is pretty high. Would you be cutting while moving? If so what speed?
HTH
Regards