I've made a little progress with the lathe. I was able to get the tailstock completely disassembled, but its still a little stiff...the quill/ram really needs to be turned itself, and cleaned up with some 500-1000 grit sandpaper. I also picked up a thread dial, and mounted it in place.
I did run into an issue, but I think it is simply a lack of understanding on my part (at least I hope). I disassembled and cleaned up the 3 jaw chuck, it was pretty gunky and difficult to adjust. Got everything together, and the jaws meet perfectly in the center, except I cannot get a piece centered in the jaws. I checked runout at the side of the chuck, and its no more than .003-.004", but runout with a piece in the jaws is bad enough you can see the wobble. I can gently tap the piece and get it maybe to 10-12 thousands, but that's about it. Granted, I don't have a piece of rod stock that I know is perfectly straight, but I don't think it would make a lot of difference.
Is there a trick to getting pieces correctly centered in a 3 jaw chuck, or is it likely the chuck itself? I haven't tried the 4 jaw yet, and haven't actually tried it under power...this is with me slowly rolling the headstock via the main pulley.