Sorry I have gotten back to this. Apparently there were more replies but the site did not alert me.
Anyway, I butted the outer races to each other, then tightened the nut against the inner races, to press the ball bearings into the curve of the outer race. This provides the pre-load so there is zero thrust on the spindle.
Since my last post I finally got around to making another collet for the tool grinder and ground the last .011" with it installed in the work head. I then reground the spindle, with all bearings removed, and now have less than .0005" run out. I am quite happy with the result.
Thanks,
Chris