The connections from the 407 to the VFD look correct, including the 407's Aref to the VFD's "+10V".
Did you change the VFD parameter (PD002?) to select operating speed from external terminals? It appears so since you are getting a reaction to the PMDX-407, but I gotta ask just to be sure.
Do you have PD070 set to 0 (for 0-10V analog input range)?
Are you entering an "S" command or somehow selecting the spindle speed in Mach4?
When you turn on the spindle in Mach4 and change commanded spindle speeds, does the "PWM" LED on the PMDx-407 change intensity/brightness? For example, an "S3000" (i.e. full speed) command should make the LED pretty bright, and an "S500" command should make the LED noticeably dimmer. Do you see these changes on the PWM LED?
Do you have a volt meter or DMM (digital multimeter)? If so, try commanding the spindle to full speed ("S3000") and then measure the voltage between the "Agnd" and "Aout" terminals on the PMDX-407. It should read very close to 10V. Then set the spindle speed to "s1000" (1000 RPM) and again measure the voltage. You should now read something close to 3.3V.
*** WARNING *** Be VERY VERY careful when measuring the voltages on the PMDX-407's analog output terminals. These are isolated from the rest of the PMDX-407 and PMDX-424 and *could* be at the AC mains voltage.
Bob