I use the Shars prec lvl on the flats with 1-2-3 blocks. When I first set up my lathe every time I raised a foot off the concrete I had to wait a day for it to come down. I also have an MT5 test bar that plugs right into my spindle bore. Very handy.
Have a look at 'Build something cool' on the you tube. has a simple pendulum level very simple and accurate. Then,(opening can of worms), try Rollie's dads method to check alignment.
Definitely try the "Rollie's dads method" if your trying to stop cutting a taper. Amazed me how little change to an adjustment on the feet changes the twist on the lathe bed.
Leveling is not necessary but nice.
I have all six feet bearing load now. I was able to get the HS side level with small adjustment to the outside. Then to get the TS in line I ended up with .005" Shim directly under the two lathe feet (outermost or backside). Took a test cut with no TS support and cut .0005" taper in about 7 inches. Larger on the TS end. I'll let it sit and try again in a few weeks.
I answered this same question a few weeks back on another forum. I set the level on the top of the saddle and use it as a sled to check the path of the tool after I level the bed long ways. I usually leave the bed slightly higher on headstock end so the coolant in the bed flows toward the tail-stock end where generally the coolant pump is at. Just last week I did a repair on a Sharp 1440 lathe and the saddle inverted V and Tailstock inverted V ways were not the same height, so setting the level on top of the cross-slide flat worked perfect.
On many of the old American Iron like Lodge and Shipley the manuals told you to set a parallel on the saddle wings and put a level on there so you follow the path. Look at figure 8 -- http://vintagemachinery.org/pubs/2104/3558.pdf
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