Here's what I sorted out or rather cradek guessed what was happening. The M110 file is not executed where it is, so I was looking in the wrong directory for the html file. What happens is when the M110 is executed in Axis it is in the configuration directory so not specifying a specific output directory the html file was created in the configuration directory. I was assuming the M110 was executed where it was which led me to the incorrect conclusion that it was not working. When I ran the M110 from the file manager or terminal it ran in the nc_files directory so the output was sent to that directory.
I had the html page open in icewheasel prior to running so I was looking for the change only.