yes, that's an awful lot of movement. As David wrote, a few thou is normal (my knee is ~0.002", my quill is ~0.001), but 30 thou is way off. Without any other information I would said "that's a crazy loose gib", but you've already said the gib is tight.
Only other suggestion is to repeat the test with the gib tightened as you wrote in post #51 at the top, middle and bottom of the travel. If the head is binding at either extreme, then you should see a much smaller distance between locked and unlocked at the ends compared with the middle. If that turns out to be the case, then your column dovetails are not parallel but "wasted" in the middle.
Another quick Q - do the dovetails have way oil (or some kind of oil) on them? Just another thing to check.