As you read the response below, keep in mind I don't do
a lot of cutting. I do some, but not nearly enough to be considered "production".
My initial thought is the 250-300 ipm is too slow for a 1/2" bit. Going by Onsrud's chip load calculator located here
http://www.onsrud.com/files/pdf/2012%20 ... pboard.pdf for that material (I believe same type of material you are cutting), you should be somewhere in the 550-600 ipm speed. That speed calculated using the row 60-100(DE), .022" chip load, and factoring the 25% reduction for two passes. It may be worth calling in to Onsrud's tech line to see if there is another option in tooling or recommended speeds.
That all being said, there is an oscillate code. Turning on an axis to oscillate is a G65, turning off is a G64. You can search in the Super Control manual for those codes and it will list the stipulations.
-Clint-