I've been very busy but finally am getting back to addressing the machine. It took several weeks following my initial inquiry of PM about the subject of this thread, but a spec sheet from a Sieg machine was provided to me to check tolerances and excuse some of what I was seeing as being within allowable tolerances, along with all of the other suggestions offered.
I still could not accept that I did not have a simple within-tolerance runout, I have dancing runout that moves, which means no matter how much I tweak the adjustable 3-jaw & 4-jaw chucks I purchased specifically for the purpose of maximal possibility to achieve perfect centricity, I would never be able to achieve it.
I located some new old stock P5 bearings, both tapered roller to be exact because it is my intent to convert the lathe to a double tapered bearing spindle like the the Taiwan made 12x36. I removed the spindle once to take measurements of the bearing housings and seals (which are plastic/nylon, non sealing end caps held in place by paint) because I also intend to convert the spindle bearings to oil bathed. I noted that the belt pulley bore, had been severely galled when the machine was assembled at the factory, hence my self quote above.
I purchased a P4 NSK, 6010 bearing prior to deciding on angular, and installed it on reassembly of the machine. I had pre-marked the spindle at the runout trouble spot. On reassembly, the max point of runout moved about 5 degrees clockwise, but I left the initial mark in place.
The FAG P5 bearing for the chuck end of the spindle finally arrived (Ordered from France), to pair with the P5 URB bearing intended for the tail end. I removed the spindle a second time, and used a clamping style bearing remover to successfully remove the stock bearing without damage.
Both OE bearings are made in China, I can not attest to their quality. Below are pictures of what I found and this is where I am as of this post.
The bearing sleeve rides directly over this rough area of the spindle which extends from the stop point .300" inward, 360 deg. The pictures are at various points around the shaft with one or two duplicates at different angles/closeups.
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This is the roughest area of the shaft from my observation and coincidentally it lines up with the point of greatest deviation in spindle.
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This machine appears to have been assembled rough and in a hurry. The bearing bores in the housing are rough to. There was a piece of swarf about 2" long attached to the inner groove at the clear end of the tape in the first pic on tear down as well. I'll send this new found info to PM and find out what a new spindle costs, as I doubt a replacement would be shipped looking like this. I'm going to call this a "Covid" machine more so than a Monday model, or the "Let's squeeze one more machine out of these inserts". The liquid residue wiped from forward housing was magnetic to the point that a 1//4" dia magnet could be suspended easily from the paper towel it was on. I haven't posted the pic of it.