I finally managed to get the new bearings in. I first had to undo my previous attempts. I used Locktite blue and it got all over the threads and it hardened. I used a heatgun and a pick to clean up the threads.
When I pulled the chuck side bearing race out of the headstock, I found a crude spacer in there taking up space. It didn't look very precise, so I just left it out when I put it back together. I think it was a bearing cover plate they were using as a spacer.
I elected to not doing any work on the spindle. It took some work getting the old bearings off, but using my digital calipers I decided the old bearings were tighter than the new ones. I drove the chuck side bearing past the other bearings high spot just a little at a time on each side. It went on easier than the old ones came off to be sure. I just used the threads on the spindle to pull the drive side bearing in, using the old ball bearing as a spacer. It worked.
I was able to get it to tighten up just fine so far. I ran the lathe at top speed for a minute or so, and it seemed OK. I ran out of time so I didn't do any machining yet. I decided to quit while I was ahead too.
I am afraid to try and do a cut off. I have a couple parts I need to make. I almost want to make those first because I need those parts ASAP. Then I can experiment with the cut off again.
I noticed the bearing seat for the outer bearing race, in the casting of the headstock, has some gouges or creases. I guess they are voids in the casting. I am afraid that perhaps the casting is cracked at those points. Perhaps that is the root cause of the creepage in the bearings? It seems like if you were making a tool, and your machining uncovered a void in the casting, in about the most important spot in the casting, you would reject that casting. I guess there's nothing like a quality tool. And that's exactly what I have. Nothing like a quality tool! I guess if I wanted a quality lathe, I should have bought one?
Well, wish me luck. I think I'm gonna need it.