The Y axis had handwheel resistance every 1/2 turn, so I put the screw on the lathe between centers and there was a bow of about .030" and it was visible when rotated. In a jig, I bent it more straight to an invisible .008" or =/- .004". Then, I shimmed the brass x-y double nut to locate the Y screw more in the center of the knee casting opening. Otherwise, the Y screw would sag down toward the bottom of the opening. The handwheel resistance was gone, and the action was very smooth. I was getting .018" backlash. Solutions to reduce that could be adjusting the shims to tighten up the Y nut on the screw; the only effect on the X axis would be null as the X nut would only be revolved a very small amount. Other option would be to try and find a double angular contact bearing that was adaptable to replace the existing 6202. And BTW, the knee and the X screw checked out on the lathe straightness test.
I can only imagine what happened to cause this. The 3rd handwheel was broken in all 3 spokes and the wheel itself was cracked open. I'm thinking the mill fell face first on that Y wheel bending the screw, and quite possibly bending the bronze X/Y nut to cause the Y screw to position more up or down. You never really know what you got when the mill comes in boxes of parts.
In this build the table would ordinarily be next, but I'm not quite sure how I'm going to clean it up. I'm starting on the head re-build at this point so I can tram the table and see if there is any front-back nod. If there is, I may scrape it flat. If not, I still have to deal with the abuse. A local Blanchard grinder priced himself right out of the market when he quoted his price. Then, there is the motor/pulley assembly waiting for me.