I bought my SPG2109 lathe 4 years ago and just bolted it up and plugged it in and away i went. Accuracy has never been an issue, mostly i turn parts down by trial and error.
The bearings started to rumble so I fitted a set of Timken taper bearings. It went back together and works. 
Whilst it sat there in bits waiting to the bearings to be delivered my attentions turned to the accuracy. Ordered a ground steel bar accurate to " h8 tolerance +0 / -0.033 ".
After fitting the bearings I tried a cut and it was terrible, I put an 12" bar in and tried moving it, i could detect a slight rock and nipped the bearings up a touch more to eliminate that. Phew!! that solved the issue.
The runout was fairly bad so I stripped and cleaned the chuck and took a slight skim of the spindle plate as I thought it maybe contacting the back of the chuck. It appeared to cut uniformly, so high spots or runout.
I turned a 20mm piece of aluminium bar down very slightly (close to the chuck). My 0.01mm dial gauge wiggled ever so slightly. Width of the needle at most.
But extend the bar 12" out in the same position and its now + and – 0.1mm out. If im reading the gauge correctly 0.01mm divisions and giving a total runout of 0.2mm at 12". The highpoint is exactly where number 3 jaw clamps and when at the 12 o'clock position. (standard 3 jaw chuck supplied with the lathe).
Although I faced the spindle plate I did not machine the locating ring, maybe thats an option? It does fit that very very snugly.
The cheapo lever style dial gauge decided to break at that point. The silly dovetail part snapped off the holder. Looks like I need to make a decent one.
Sorry for the long waffle guys. Am i going in the right direction here? What do I need to do next?
Thanks
Dave from Brum 