are you 100% sure the parallel cable is ok? can you buzz it out and confirm its wired 1:1?

As Jonathan says the configuration looks basically ok, but can you bring up the motor tuning page for each axis and take a screen shot.

Another thing to try is swap X and Y axis.... so make X-step, X-dir 14 & 7 respectively... then try jogging X... which should cause Y to step. Incidentally I was led to believe that you must stop and restart MACH3 after making each change so that it saves and rereads the new configuration (I read this somewhere).

What test equipment (multimeter?) do you have at your disposal?