Ignore the CAPS screen, it only relates to the on-machine programming function not the actual tool changing.
Let's start with the registry screen. You must set the SP. and WAIT values to match what is physically present in the machine. If SP.=1 then tool 1 should be in the spindle. If WAIT=100, tool 100 should be in the wait pot and the pot should be oriented in the position it needs for tool change (i.e. pointing the same direction as the spindle tool). Whatever values you have in SP. and WAIT will show up on the Modal or Position displays as Current Tool and Next Tool. Unless you are using a probe, the SENS values should both be set to none. if WAIT=NONE then the wait pot should be at the tool changer side and empty.
Tool Life management is a whole other animal. Once you define a tool group, you then call that group as a 4-digit tool number. Tool group 1 is called as T1001. Tool group 5 is T1005 etc. The redundant tool does not show up in the next tool display as it usually is not the next tool that was called int he program. When the tool life of the current tool expires, the machine will not stop mid-cycle and get the next tool in the group and keep on going. The next tool is only used then next time the tool group is called in the program.