Thanks a lot for the further replies.
John, something vaguely similar occurred to me. I think it would have to wait until I need to incline the head for a more essential reason. I’m not averse to these sorts of jobs, though, because I think you can learn quite a lot from them.
Graham, I know I have an MT2-1 reducer so I will do as you suggest and see which of the two options achieves the best runout.
I’m fairly confident the thing isn’t hardened, or at least not significantly, mainly because of the price and provenance but also because I’ve machined three other R8 arbors, and none of them was particularly hard.
Putting flats on a flatless ER25 collet chuck did seem tough going, though, with an HSS end mill and so I switched to carbide. In contrast, an MT2 ER32 collet chuck I bought a while ago was very easy to machine with HSS (its flats were 35.3mm from the factory, hence my machining them to 36mm).
DC31K, all good suggestions, thanks, and the soft plug idea would allow re-machining of the bore to start from scratch, which may be my best chance as long as I use the right type of retaining compound.
Hollowpoint, it appears my mis-machined R8 adaptor has many brothers and sisters out there. Worrying to think how much highly processed steel in the world probably gets wasted.