It is a true 3D mill as it is. It has 3 axes (thank you
brainchild, I'm no longer calling them "axises"), which makes it capable of 3D cuts.
2D = The machine can only move the X and Y axes (X is one dimension, Y is the second, hence "2"D)
Plasma, water jet, and laser machines are "2D"*. They can move around in the X and Y axes and ALL they can do is cut
through the material. You cannot make "steps" with a plasma cutter.
3D = The machine can move 3 axes: X, Y, and Z.
From what I've seen, 2.5 mostly refers to the CAM software, not the mill.
2.5D = The CAM software can handle X and Y movements, and to a limited extent, Z. 2.5D works just like 2D, but it's possible to command the machine to cut the 2D paths at different depths. You can make "steps" with 2.5D CAM software, but you cannot make smooth slopes and contours (like a human face, or a hemisphere).
I'm afraid my descriptions are pretty bad, maybe these pics will help...
Here's something cut in 2D...
Click to view attachmentThere is only one depth of cut: all the way through.
Photo from here:
http://www.torchmate.com/photo_of_month.htmThis is a 2.5D piece...
Click to view attachmentAlthough it's fairly detailed it's still 2.5D. It looks like there are 2 distinct sets of cuts on this piece: all the way through and approximately 80% through. It would be impossible to make this on a plasma cutter.
Render from here:
http://www.graphcam.co.nz/Products.shtmlHere's a 3D milled object...
Click to view attachmentAlthough there are no undercuts it is considered a 3D piece because the machine used to make it had to move all 3 axis at once.
Photo from here:
http://www.extralite.com/Products/E-Bones%20qrc.htmAny more than 3 axes is usually referred by how many axes there are. Adding a lathe to your mill will make it a "4 axis" machine.
Here's a very cool video of a 5 axis machine:
http://www.youtube.com/watch?v=QsmiIeAkE-o (note: other than the techno and the sounds of the machine, there isn't any audio on the video, so mute it if you want.)
* It's probably possible to do etching on these machines which might quality as 2.5D in the most technical sense.