Hello All,
I am posted this to hopefully spare some poor sod the same head scratching issue that I have gone through and I also have a question at the further on.
After years of head scratching and purchasing different sized parting and indexed cutting tools I have finally gotten to the bottom of why my tools sometime appear high as well as the contradiction between members' experience on whether a 10mm indexing tool can be used on a Myford S7.
Here is a photo of my tool holders:

The top 2 came with the lathe and I purchased the bottom three from Chronos in 2014. Visually the top ones have different knurling, different coloured cap head screws and the original's have a matt "blasted" finish. But crucially, the lower lip of the original holders is 0.2320" whereas it is 0.2665" for the new holders. This means that a 10mm indexing or parting tool will only fit in the top two holders! It is too high in the newer ones.
So, my question is – can I shave some material off the bottom of the newer holders? I am unsure what kind of steel they are or whether they are hardened. I do have a fly cutter set up on my S7 which I have used to good effect before.
Many thanks
In the interest of reference to anyone viewing this is the future, these ME threads may also be useful:
**THREAD 1**
**THREAD 2**