It should be the opposite. If you use half micro stepping, it should be 2. You are just dividing the single step pulse by the number of micro steps in that case. So it would be 0 for Full, 2 for 1/2 step, 4 for quarter, and then 8 for 8.
Looking at the heatsinks, you will have 1 set of jumper blocks underneath each one. Just to the right of the blue pot.
You will see 3 rows of 2 pins. The first 2 rows (below the heatsinks) will not have any jumpers on them. That means that you will be in 8 microstep mode. That is the weakest, but most minute amount of travel the motors can have.
The rows should be labeled
MS0 on top
MS1 in the middle
EN on the bottom. (The EN jumpers will disable that particular axis if it is removed)
For 1/8 step. There should be no jumpers on either MS0 or MS1
For 1/4 Step. There should be a jumper on MS0 but NOT MS1
For 1/2 Step. There should be a jumper on MS1 but NOT MS0
For Full Step. There should be jumpers on Both MS1 and MS0
If you go to full step, you would put 0 in he EMC2 steps and then i believe your steps would be 4000 with the 20tpi screw.
I would start there and then work my way back. Your accuracy should still be good with the 20tpi screw.
Hopefully that makes sense. Xylotex didn't send any extra jumpers with them, so I hope you have some around there. I am in the PC biz so I had a few hundred from back in the day. lol...