Updates:
I managed to set it as much as my adjustments permits. Current reading on my DTI is .01 mm which is 0.393701 (in thousandth of an inch). Is this an acceptable tolerance? For what I do I can accept it but what do others think?
For future reference in which others might encounter this with this set up, this is what I did to bring it to that tolerance.
1. Register is on the loose side to allow sufficient adjustment (but not to loose).
2. I have to reduce the diameter of the supplied allen bolt head to around 8.8 mm to allow movement for adjustment as the original allen bolt head diameter does not allow this. This saved me from re-boring and counter boring the collet chuck holder as the tolerance on the original bore is critical on the periphery (to big and the side will be thin).
3. An accurate and precision collet with a tight runout will further help with accuracy
Issues encountered:
1. I think the register on the back of the collet chuck is not that accurate.
2. The backplate PCD is also not accurate with the collet chuck's PCD.
3. the allen bolt supplied had a big head diameter (The counter bore on the collet chuck is I think big enough, to big of a counter bore will run the risk of a thin walled area on the collet chuck's peripheral margins).
Perhaps its best to have a single collet system like the ER 25 which is directly screwed to the spindle of Myford lathe. However having the backplate and collet holder system allow for someone to fine tune the system to almost zero reading. Other factor that I needs further testing is how accurate the taper is and accuracy will be further enhance with a precision collets and lock nut.
Any additional thoughts will be most welcome. Hope this will help others in the future.
Cheers,
Raphael