where are your zero coords? If I read this right it traverses Z for 3 stepping X down from 1.385 to 1.325 in 0.02 steps then a final cut at 1.32, then is supposed to peck a groove at Z-.5 to Z-.7 going in the first cut at 1.287 then in steps of 0.02 down to 1.087 with a final cut at 1.077. But this relies on the tooltip after the tool change being exactly where the program thought it was on the first part... how are you setting the tool depth on the change and zero'ing off?