VCarve to WinPC-NC USB problems

Hi,

I am new to CNC and Stepcraft and am trying (fighting) to get something cut out.

My setup:
Stepcraft 2 / 300
VCarve Desktop edition trail
WinPC-NC USB
Proxxon mill

First I followed the tutorial in VCarve creating an Avalon nameplate. I simplified it by using just one toolpath.
I exported the toolpath using the Stepcraft UCCNC Arsc (mm) (*.txt) post processor.
Next I fired up WinPC-NC USB
Opened the exported toolpath.
Hit the move to reference options in WinPC
Set the zero xyz position just above the MDF material with the manual movement option.

Now, when I hit the start job button first it tries to push the mill through the material. Next it hovers up halve way and starts the CNC pattern mid air.
Why is it going wrong with the Z-axis?

Any insight, or a pointer to a take-me-by-the-hand-tutorial from design in VCarve, importing in in WinPC-NC USB and setting it up and milling it correctly would be helpfull.

Thanks.