Hey PattenP, I'm getting different and conflicting info here. This is from Miller's site. read the last line:
"I got to jump in on the neutral wire discussion here and put my electrical engineering degree to some good use for a change.
Both Line 1 (L1) and Line 2 (L2) are 120 volts AC with respect to the neutral bar. However, they are 180 degrees out of phase, so if you put a load between L1 and L2, you get 240 volts AC. Most welders that run off 240 volts AC use a three conductor plug. The load is connected to L1 and L2. The chassis is connected to ground. The neutral in this case is not used.
Ground is not to be confused with the neutral connection. They serve separate functions even though they are bonded (connected together) at most breaker panels. Most new breaker installations have an "isolated ground bar" where the ground wires are connected separate from the neutral bar even though they both go to ground.
There are some plugs - like the 220V/50A plug the Bobcat and TB that have four connections (L1, L2, Neutral and Ground). That plug is intended for applications where your load needs both 240V and 120V circuits. I don't have my charts in front of me or I'd give the NEMA numbers for these outlets/plugs.
The reason the neutral and ground need separate conductors is what confuses most folks. Because the neutral is grounded from the power company, there can be a slight voltage difference between it and the local earth ground. If that voltage potential gets large enough, it can be dangerous. This is why the chassis of appliances needs a ground wire that is separate from the neutral.
When should you use four wires and when should you use three? It depends on the plug your welder requires. If you use the three prong plug, you need three. If you use the 4 prong plug, you need four. Most welders use a three prong plug.
A good example of a four prong plug is a 50 amp RV connection. The RV may or may not have any 220 volt appliances, but it utilizes both of the 120 volt lines. The other major use for a four wire application is a sub-panel. It needs both the neutral and ground wires to be separated in order to be safe".