Hi Paul,
>>>> was thinking of starting with LazyCAM as it is included with MACH3 which I'm using to control the X3 CNC mill that I just completed. I checked LazyCAM and they support only round and rectangular pocketing, their wasn't any mention of islands. I hear the terms pocketing and islands on CNCzone.com and know what they are.>>>>

I noticed in lazy cam in the pocket menu there is a checkmark to "create islands". If you have a circle and put a circle inside of it, then your software should be able to designate that as an "Island". Basically means "dont cut this". So in your model I posted a picture earlier of, The inner circle I told to be a pocket and the "GOT" letters I told to be Islands and it cut around them.

Basically the more you pay for your software the more features you'll get. So like doing a basic pocket with some islands with lazycam, its a one shot deal, with little control of the toolpath and how/where it goes. Higher end stuff can allow you to set different heights for different islands and choose different types of entry for the toolpath and control which way it goes.

Lazycam will be a nice free start. after that I'd find some inexpensive stuff to move up to first until you know more of exactly what you need. The higher end stuff gets expensive and no need to pay for features you just dont need.