That sounds like a different issue, but maybe we got your text issue solved.
I don’t understand why the spindle would be running all the way across the workspace on the X axis. It could be due to improper stepper calibration ($100 and $101 should be about 40, unless you have non-standard steppers). There is a jumper on the G-shield or Arduino that control the number of microsteps, but I think the jumper controls ALL of the steppers. Is this true @LarryM?
As for the Y axis, it sounds like you’re not getting enough power to your Y steppers if the Y axis is not reaching 2". That implies lost steps, which is commonly due to overly tight/loose belts, loose pulley screws, tight V-wheels, and/or improper pot settings. I would start by inspecting the pulley screws (tight and centered in flat on shaft), then loosening all the X and Y V-wheels all the way and trying again. Follow that up with a pot check and a stepper motor calibration. Then I would move on to loosening the belts a little at a time until you get the proper size circle. If the problem gets worse, then tighten the belts a little. Once you get the best circle, tighten your V-wheels up.
I don’t use UGS, but I would suggest using Easel to set up a couple of test shapes. That way the G-code will be created by the same program that’s running the X-Carve and you won’t have the possibility of a corrupt or incorrect G-code file being passed between programs.