Old ShapeOko 2 user

Ok so I found the original spindle that came with the machine, I think it’s an “Altocraft” .
Set up the following test in Easel :
http://easel.inventables.com/projects/FmrV9jThg2ucXV-OF2_TCA

But when I run it, just the letter M is over 7 inches wide… even though I set the test for a 4" x 2" section…
So I stopped the carving as soon as I saw that.
Also, the MDF is level, and so is the machine (I’m fairly sure)… but the spindle doesn’t go through all the way…

Again, any help would be appreciated.