I have ran Big Devlig jig boring machines and even a SIP. .002" is about the best you can hope for with twist drills and a reamer, especially if your doing it with a drill chuck. Many jacobs have that in runout!. Using a er collet tool holder will help as will higher end carbide drills but still you will have consistency issues due to the limitations of twist drills.
The boring really needs to be done over two or three passes to true it up. If you try do it all in one pass you will have run out issues. Maybe a quick change tool system like tts can have 2 different boring heads set up so your not adjusting them?
As far as play, if doing precision work on a machine with a less than ideal quill, lock it and move the knee on the critical passes.