Wow! That's a great pic. I bought an old set in the box 3 or 4 years ago on eBay, primarily for the 196 indicator to use on a jig I was making for trueing my tailstock, and I kinda figured that little setup was for an internal bore, but I wasn't quite sure how to set it up in real life. Now I know! No doubt you could rearrange things so as to hang it out of your milling machine spindle and indicate a bore, but it seems like using a coaxial indicator, or for that matter a dti on an axial holder would be just as fast, or faster, and just as accurate.