How to setup a tool sensor

How do you setup a tool sensor exactly? I cant seem get it right after a week of trial and error of setups, parameters changes. This is not a wiring issue or a debounce issue but a setup issue.

Current Setup:
LinuxCNC 2.9.4
2" tool sensor on the bed
Attached is my setup files

From this document  linuxcnc.org/docs/stable/html/gui/gmocca...uto-tool-measurement  I cant tell if I am doing something wrong or where the discrepancy is.

This example setup would cause the Z axis to come down to get to the -20 setpoint. This results in a crash into the probe and a "Probe tripped during a non-probe move" would appear. The solution to this was to set the Z to 0 so the probing search would start immediately

For this next issue is touch off x and y (not z because the document says to press "Block Height") I immediatly get a error when pressing x or y touch off. 

"G-code error in change.ngc near line 76, file ended with no percent sign(5) or program end (m2)"

Now if I just ignore these errors I get the same error when doing a tool change after it probes it.