Here's what I usually do to fix this problem:
1-Go back to Illy and open the file.
2-Select the offending path and offset to the outside by 1/8" or so.
Object---Path---Offset Path. Enter a positive value.
This will show you if the path is open (which might be the reason for the error). If only one new path is created on the outside, the path is closed. If a new path is create outside and inside, the path is open. You will see where it is open where both new paths have a perpendicular line connecting to the points where the opening is.
3-To correct this, undo 'till your back the original path only. Using the white selection tool, Drag select the points where the opening is and: Objet---Path---join. The path is now closed.
That does't mean you're out of the woods yet. The "Loop" might be a few Thou big, you'll never find it, even going over the entire path at maximum zoom.
So:
4-Create a rectangle inside the offending path. Select both path and
Effect---Pathfinder---Add. This will create a Compound Path. Might have been a Compound path already, but do this step anyway...Thrust me.
5-Select said Compound Path and Object---Compound Path---Release.
This will split the Compound Path in indivual Paths.
6-Ungroup if all paths are grouped. Object---Ungroup
7-Select the path you want to keep and lock it. Object---Lock---Selection.
8-Now, here's the magic part... Sellect---All. You will see the offending areas where the path intersected itself as they will light up in the color of the layer they're on.
9- Click Delete... you're done.
If .pdf works for you, fine. But you might want to try other types to send to ArtCam. Illy can export both .dxf and .dwg. But I find, at least in Type3, that .eps works best.
Hope this works for you.