Remove the jaws and re-install them #1 first . The jaws have to installed in order and have to go into the scroll correctly . If that chuck is off .100 something is not correct as a set true can't be thrown off that far .
Take a pic with the jaws fully closed and post it here if you would .
Edit . After looking at the above pic , definately looks like the jaws are installed incorrectly . Looks like the top and top right jaws are out past the OD while the others are not .