Looks like it is repair shop time, or peruse the Miller forum (make sure you have your serial number handy) and check for fixes. You'll find it's a common problem.
There are people on that forum that actually repair Miller welders so that is the place to go. I'm guessing a Miller tech at a repair shop could probably tell you what the problem is without you bringing it in, and might be able to point you to a fix.
I would say probably 95% that it's the AC amperage control circuit.
I'm guessing a replacement board would be in the $800-1000 range, I see places that list repairs for the board around $400.
However ... it still could be a lose wire, a small component, or something cheap. If you have NEVER used it in AC before it could be something that was never hooked up, or a lose wire right from the get go. Also since yours probably has auto sensing supply voltage hookup you might want to make sure you are supplying it with enough power, AC usually requires considerably more than DC.
When my Syncro-Wave dies I'm going to haul it away and buy a $1500 super duper Chinese Inverter TIG, there are a few decent ones out there now and I'm just not going to pay the stupid prices that Miller and Lincoln charge anymore. Unless you are buying an industrial unit you are just getting foreign made stuff from Miller anyway, and the repair and replacement prices are just crazy, and the service is no better than you'd get from the MayTag repair man.
Heck, the broken on-off switch on mine is about $250 ... for a freakin switch, and it doesn't cross over to any other aftermarket product I can find. If Miller and Lincoln don't get their act together they will cease to exist before long. The days when they were the only game in town are long gone.
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