Yep, that would sure make threading a challenge. Once that is rectified, my guess is you'll be able to go back to using carbide.Bamban travelled 2 hours south to help me sort through this today! What a guy. Looked over the machine. Checked the gibs. Watched me thread with the same results. New HSS tool. We disassembled the compound and discovered the compound did not seat squarely on the cross-slide. See video below.
The interesting aspect of the play in the compound was that it was absent when the compound was oriented at 0 and 90 degrees relative to the spindle axis. When the compound was moved to the correct setting for threading it rocked. I've got more videos of the DTI moving across these surfaces. Suffice it to say that there was considerable movement with the DTI at the 1-3 o'clock and the 7-9 o'clock areas of the compound seat.That makes sense. Glad you figured it out. I'm surprised it didn't show up in turning and facing? Why only threading?
Robert