I took just a quick look at the Mach3 XML file. You have the spindle STEP and DIR signals mapped to Pin 14, as well as OUTPUT #1 and OUTPUT #2. And OUTPUT #1 is controlled by M4 and OUTPUT #2 is controlled by M3.
So you have the spindle step signal (which is actually a PWM signal) fighting with the spindle DIR signal, fghting with M3 fighting with M4 for control of the pin 14 output.
If your goal is to have pin 14 go high (and thus energize the relay) whenever the spindle is running, do this:
(1) in the config->Ports&Pins, go to the "Spindle Setup" tab, and un-check the "Use Spindle Motor Output". That will disable the spindle step/dir signals.
(2) It has been a long time since I've run Mach3, and I am not sure how it behaves if you have outputs for both M3 and M4 driving the same output pin. So I would suggest at least for now that you disable "Output #1" in the "Output Signals" tab. This will allow M3 to turn on the relay, and M4 will behave like M5 and turn off the relay.
This should allow the K2 relay on the PMDX-126 to work. Once you have that working we can talk about supporting both M3 and M4, and possibly getting your PMDX-107 installed (which may help here).
Bob