You'd want to blue it and see what you have to deal with first. The blueing of sliding surfaces isn't overly complex but some imagination is needed. You are simply trying to find out exactly what is going on and making sure you address the problem and not make it worse. I'd take the compound off and inspect the gib. lay a drill rod into the dovetails (all 3 sans gib) and get a better idea of what is going on. If you have a real straight edge with 30° angle you can use it to blue.
I still don't recommend lapping or grinding because there is no good way to fix the previous grinding (wear) that causes your problem. The wear is normally caused by the sliding surfaces only being used on part of the travel for years.
If your gibs are most of the wear you can make new ones. If they are bowed don't try to straighten as they will break and the bow makes no difference. You can buy cast iron from most any of the online venders. ie http://www.speedymetals.com/pc-4253-8387-34-x-1-12-gray-cast-iron-class-40.aspx so as not to turn your cross slide into a lap.
I'm thinking the atlas has straight gibs so you can mic them down the length and it should be the same thickness down the length. Some lathes have tapered gibs which are wedge shaped and have an adjusting screw on each end to wedge them in as needed for adjustment. Tapered gibs should be a true angle.
Steve
Steve,
Excellent,
Im all over it. thanks so much Ill let you know how it turns out.