Well, i finally got the chuck disassembled. My theory on the plug of swarf was half right - it did cause the problem but not how it I was guessing. The plug broke out/deformed the thin wall of the screw hole, which pushed enough material into the way of the scroll gear to lock it in tight. The scroll gear will not seat currently and I'm not going to force it.
The picture makes it look worse due to reflected light, but it's enough to interfere. So next question, how do i fix it? I'm thinking I could get a machinist to turn it down or hone it, or I could just go at it with a die grinder. It doesn't look fatal to me, but I'm inexperienced.
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Wow,
I would probably use a half round file first and if that's slow going(or it's too hard) use the die grinder carefully. Always the need to clean is good after using abrasives etc.
After you have removed the lump you could try re assembling it and see how it works.
Stu