I wanted to post this as I researched around and I couldn't find this really spelled out how to setup tools in Mach3, with homing switches using a toolsetter. Please let me know if I get anything wrong:
Setting up multiple tools Mach3 (on machine method):
1. Home all axis (can do individual in diagnostics).
2. Under 'Offsets' menu, open tool table - update tooling with numbers, names & diameters. Reserve tool 1 for master tool.
3. Under 'Settings' tab, turn on 'Ignore Tool Change' - prevents axis motion when doing setup.
4. Load tool (first tool is master tool) in machine. In 'Offsets' tab, type 1 <enter> in Tool DRO to change to tool, master tool 1.
5. Jog tool teeth over toolsetter plunger and make toolsetter indicator 0.
6. For master tool 1, click on 'Zero Z' in DRO - only for master tool!
7. For all other tools click 'Set Tool Offset' (leave gauge block height 0.00)
8. Jog Z axis up for clearance to change to next tool.
9. Change tool in spindle and in the Tool DRO type new tool number <enter>.
10. Repeat steps 5 thru 9 for remainder of tools
11. Under 'Settings' tab, turn off 'Ignore Tool Change'. Verify tool change location DRO is updated properly in machine coordinates to where you want it to go.

Setting up future tools (on machine method):
1. Under 'Settings' tab, turn on 'Ignore Tool Change' - prevents axis motion when doing setup.
2. Load in previously setup accurate offset tool into spindle
3. In 'Offsets' tab, Tool DRO, type number of tool in spindle <enter>
4. Jog Z axis cutter teeth onto toolsetter, make indicator 0.
5. Zero the work offset by clicking 'Zero Z' in DRO section (DO NOT press 'Set Tool Offset')
6. Jog Z axis up for clearance to change to next tool.
7. Change tool in spindle and in the Tool DRO type tool number <enter>.
8. Repeat steps 5 thru 9 of 'setting up tools' for remainder of tools, using 'Set Tool Offset'.
9. Under 'Settings' tab, turn off 'Ignore Tool Change'. Verify tool change location DRO is updated properly in machine coordinates

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