Hi, I've been using Mach 3 with a CNC Mill for more than 10 years, and having looked at the specs of your CNC Router it would appear that you only have it connected to the computer using a USB port. As another member has already pointed out, you need to connect it to the computer using a Parallel Port, unless you use a Smooth-Stepper, or similar adaptor, which would allow a USB connection from the Controller to the Computer. The DRO's (Digital Read Outs) in Mach 3 will show movement on all axises regardless of whether the controller is connected to the computer or not! Regarding the use of XP, I used XP to run my CNC Mill for about 8 years without any issues, so don't feel obliged to update the Operating System of your computer, it is not the issue. The only reason I upgraded from XP to Windows 7 was so that all my computers, I have 7, were using the same OS. The real issue is the Parallel Port. You may be aware that computers are no longer supplied with Parallel Ports, so, if you upgrade your computer you would have no option but to purchase a USB adaptor like Smooth Stepper. There are cheaper versions than Smooth Stepper available from China, and a search on Aliexpress or EBay will show you many. All the best with your Router. Denis from Downunder!