These guys are right . I would adjust everything up and run it. I believe most if not all the cutting problems you see are from crosslide and/or compound gibs need adjusted, Tail stock probably needs adjusted too. My lathe has at least that much wear in the center of the ways and I have no problems holding .001" or less tolerance. I adjusted the gibs snug in the center then moved to the headstock end and loosened them just enough to get it there but tightly. This is a compromise. You are a little loose in the center and a little tight at the ends but it will work just fine. I been doing it for quite a while and I make a lot of ......stuff. Unless you are making parts for the space shuttle, it will be fine. They are also right ..... it seems like you got a great deal.