ok, after some goofing around with soft limits I can reproduce what's going on with Dan's set up. Carbide Motion 407 (what I'm currently using) was working properly. When you first set up $130=800, you did not have soft limits turned on ($20=1, required for using soft limits [$130 through $132]).
Once you turned on soft limits with the command $20=1 at the MDI screen, the command took. When you do a rapid position to NW for example, CM sends [G53X-820.000Y-10.000Z-5.000F6000.0] to the controller telling it to go to [home]-820, which is outside of your $130=800 giving you the error (Jog target is greater than home-800 [your limit], CM trying to go to home-820).
So really, any rapid command from CM that goes all the way west will go to an X of [home]-820. So you will need to keep your $130>=820 to 850 and $131>=780 to 850 (SW rapid sends G53X-820.000Y-780.000Z-5.000F6000.0) if you want all rapid positions to work.
Hope that makes sense..