This video shows you how to connect your controller to your machine. It then goes on to show you how to use the controller.
At the 10:40 mark there is a CAUTION statement: All power to the control and the drive box must be off before you connect the ground wire to the machine or you will cause a ground loop, which will damage the optical encoder and possibly damage the control board.
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Setting up Your New Sherline CNC Controller | NatokHD