If you are going to try to grind it in better, I would put it in a 4 jaw and spend a lot of time getting the mounting shaft as close to perfect run out as possible. You have a half thou run out in the 6 jaw chuck you are starting from. This means you will never get it to run any better than your starting setup.
Can you contact where you bought the collet chuck from and see about getting one that meets the advertised specs? Once you start grinding all warranties or options for return are gone.
I understand getting it as perfect as possible. I can always change out the Bison chuck with the Pratt Burnerd 4 jaw I have. The bison is effectively a 4 jaw with the zero set feature. It is adjusted exactly the same way.
I did contact the seller (icarbidemachining), this was their reply:
I sorry to hear about this run out
Please try to turn the shank 40mm or knock it easily by rubber hammer or brass ,and let the run out meet 2 ten thousand
Then tighten the yaw chuck and try it again meet to low run out
thanks
Alex
I don't think this seller will be much help. I made it clear I had a zero set chuck. But after this reply, I don't think the seller has any machining skill. On a positive note, this ebay seller, is only selling metal machine tooling and consumables, mostly ER collets. All I can do is file a not as described. However they were the only seller on eBay, or anywhere else that I can find an affordable ER50 collet chuck. No one else had the Weldon shank that I found. Mostly CAT40/50 CNC machine tapers were common, and I bet the runout on anything in the dollar amount I'm willing to spend will have more then the 2 tenths runout they advertise.
I'm going to try and dial in the taper. Then see how much runout there is with a collet installed. I'll check at the nose, and out a few inches, as that conical radial runout is a real issue that I can't adjust out. I hope this is not the problem, as any grinding of the gridner hub tapers will copy that runout error.
I have watched sever youtube videos, of what I consider crazy use of an air grinder, never intended for precision tool post grinding. And the final result's show it in bad surface finish. One guy was using a cutoff wheel, as that was the only 3mm shank tool he had outside of cheap glued on wrong grit stones for these die grinders.
I have a decent tool post grinder.