So you can turn the servo on (MSO) and get the drive to be "running", but you can then turn the motor by hand? I'm thinking the drive fault when you do this - correct? And if you give it a jog or move command, the drive faults?
Sounds to me like the drive has severe torque limiting. So the drive is content when you turn it on and it just needs to hold the motor in position (nothing is trying to move the motor, so the drive doesn't require any torque to achieve this). But if you command the drive to move the motor, it can't provide enough torque to move the motor and therefore faults because it failed to move the motor as commanded.
I'd start by looking at the axis properties:
1. Is the torque limit set to something incredibly small?
2. Is there something way off in the accel,velocity, or position loops.
I'd then try to go through the autotuning