208V 3 Phase Drop to Single Phase 208V and 120V Suggestions?

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The attached picture displays a machine I was assigned to work on. The Line-To-Line voltage L1 to L2 is used to drive a single phase servo motor. The Line-To-Neutral voltage L1 to N is used to drive 120V devices. The plant drop is a 4 wire connection.

The panel has ground connections running to the ground bar which is mounted to a frame that is bolted to the floor. Is this system properly grounded? Also, I usually see L2 and L3 to N connections for 120V devices to balance the loads. I prefer a 3-phase motors, but this is a design I have to work with.

Any comments?
 
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