Norman,
My emailed got bounced back, so I'll reproduce it here:
Norman,
Well, I'm certainly no expert, by any manner of means, but from how you describe your machine, it sounds like a bit of a basket case, if you don't mind me saying! Did you buy it new? I got my mill from Amadeal about a year ago for the princely sum of £416. I think they've gone up a little, but not that much. Got some extras with it, too - a half-decent vice and a collet set. The latter was a non-standard design, since replaced with a "proper" ER25 set from CTC Tools in Hong Kong. (I find their stuff really good value, even taking into account shipping costs.) My mill spindle is fixed, in as much as it does have the facility to go up and down in the head, much like a drill press spindle would do. I get the impression that it's just one more thing to go wrong and introduce play when worn. Maybe this is what's happening in your case? No doubt there are ways around all your problems and hopefully someone will point you in the right direction. I suppose, in your position, if I could afford it, I'd pass it on to a new owner and invest the money in a new one. At least, then, you'd have a year's guarantee with it!
DRO is indeed digital readout. I got mine from Arc Eurotrade. It's the cheap end of the market, but the accuracy far out-performs my machining ability! The belt drive is cobbled together from a design on the web and my own ideas. Originally, I bought the conversion kit from The Little Machine Shop in the USA, thinking it would just be a straight forward fitting job. I should have known better! Turns out that although the spindle is 30mm in diameter (a fact I found out when I changed the bearings) it reduces to 28mm where the pulley fits. Not only that, but the pitch of the securing bolts for the base plate were different, too. Not much, but enough to make it necessary to make a new one. So, all in all, I'd have been better off making it from scratch. To be fair, there was a warning on the web site to check the spindle etc to ensure the kit would fit, so I suppose it was my fault it didn't. You live and learn.
All in all, from your description of your proposed mods, I think that I'd be inclined to use the money elsewhere on a new mill. Easy for me to say - it's not my money!
Anyway, best of luck, whichever way you choose to go about it.
Regards,
John Hinkley