These videos are taken on my 1440GT. This machine is known to turn out good threads. See results in the following messages.
1. The video titled: RH Thread 200 RPM DTI Tool holder. Ranged from 0.0005" to 0.0008" That cut looks like its supposed to. Cutting, not digging. What did the finish look like after that cut?
2. Something that I noticed, you used the cross slide and said you were taking .002". That is a huge cut for .002". Please see my attached videos showing what I am doing at .002" which would be .004 total, and then .004 which would be .008 total.
3. When you thread the normal way by putting the cross slide back to Zero each time and only advance the compound, how much are you advancing the compound each time? In this test, even .005 at that RPM was too deep. I had to make quite a few light passes to keep the finish nice.