gcode question

We rookies were trying to make some chain idlers (small disks with center hole, 4 hole bolt pattern) with our X2 cnc tonight and had some trouble getting a plunge to occur. The circles would cut, but they would start at the surface and plunge 0.10 inch gradually as they cut the 360 degree circles. I am new at this, and don't exactly know how this is supposed to happen, but I'm betting we either need to do in initial plunge for each circle, or we need to do a second pass around each circle without additional plunge so we finalize the cuts. Any help would be greatly appreciated. thanks Chuck

N5 (File Name = idler on Monday, December 14, 2009)

N10 (Default Mill Post)

N15 G91.1

N20 G0 Z1.0000

N25 M3 S2000

N30 X0.5415 Y0.4715

N35 Z0.1000

N40 G2 Z0.0000 I-0.0700 J0.0000 F5.00

N45 G0 Z1.0000

N50 X0.8505 Y0.6935

N55 Z0.1000

N60 G2 Z0.0000 I-0.1570 J0.0000

N65 G0 Z1.0000

N70 X0.9855 Y0.9155

N75 Z0.1000

N80 G2 Z0.0000 I-0.0700 J0.0000

N85 G0 Z1.0000

N90 Y0.4715

N95 Z0.1000

N100 G2 Z0.0000 I-0.0700 J0.0000

N105 G0 Z1.0000

N110 X1.3870 Y0.6935

N115 Z0.1000

N120 G2 Z0.0000 I-0.6935 J0.0000

N125 G0 Z1.0000

N130 X0.5415 Y0.9155

N135 Z0.1000

N140 G2 Z0.0000 I-0.0700 J0.0000

N145 G0 Z1.0000

N150 M5

N155 M30