Fixing wear in a lathe is a costly process--generally considered not justified for a common machine like an Atlas. In a nutshell, you would have to totally disassemble the lathe and send the bed out to be reground. The grinding process isn't straight-forward as the bed has to be carefully dialed in and supported so as not to end up with a banana! It may not be easy to find a shop with the capacity for such a job that is willing to take on a one-shot like this. Quite likely to be _very_ costly. OTOH, maybe you already have a good buddy with a high-end machine shop?
Probably, the saddle needs to be reground (or scraped) as there is likely more wear on the operator side. Turcite would then be applied to the saddle and tailstock to 'replace' the material ground away. The Turcite needs to be scraped in to get good contact on all surfaces.
Anything is possible if you throw enough time and money at the issue but most people just move on to a machine that is already in better condition.
Craig
Thanks for the reply. You are right, of course. I should just spend about $2000, get a good lathe, and be done with it. But for now, I am trying to keep the cost of my hobby constrained. So I will spend far more than that amount in time!
Kevin