Criterion Boring Head Runout

I put a piece of ground .75" in the center holder and centered slide so I wasn't reading offset in that direction

Did you try adjusting the slide to see if the indicator reading decreased? If your truly on zero it should only increase.

I couldn't figure out how to accurately measure the location of the 1.5 x 18 threads, i.e. if they were centered with the spindle or not

Indicating on the outside of the upper part of the boring head may give an idea. I would think it would be concentric with the threaded part. Depends on how it was machined originally.
 
First the set screw will push it to one side. That thing should do just fine.
 
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