I can´t get a motor to stop: stepper motor + encoder

Hi,
I have a Mesa 7i95 with, so far, 2 stepper motors and encoders and I plan to use it on an old plasma machine.
Already set the software over linuxcnc 2.9 and I got the motors to run (I changed the original servos for some steppers, I know I might go back to servos, but this was what I had around and wanted to try them before spending extra bucks).
Long story short, I got to move in both axis but the enconder of one of the axis (the other is not well configured or wired) never finds the position it seeks. Hope a video explains: 
video of my issue

X axis, I did not get the encoder to work.
Y axis, is the one in the video that moves all the time
(Yes, I might have named them the other way around). 

Plasma.ini and plasma.hal attached

1- I do not know what to change in order to that motor to stop when searching its position
2- I do not know what I did wrong in the other axis, because it is not reading the encoder.

Could be that some wiring and or encoder to be not working properly...but I do think it is more my mistake in setting the .ini and .hal.

Any piece of advice is much appreciated.
Thanks,
Javier

setp pid.x.maxerror 0.00012700

will cause issues, this is supposed to be:

setp pid.x.maxerror 0.012700

Thanks.
Some more info
X axis, I did not get the encoder to work.
Y axis, is the one in the video that moves all the time

Yes, I might have named them the other way around. Will fix that maxerror too

Note that if you use encoder feedback. the P term must be _much_ lower
(than 1000) or you will have oscillations.