Boring tool .
You need a pilot hole – I don’t know how long this one has to be. If its short enough you could use jobbers drills.Or a set of blacksmiths drills – any cheap way of getting a near sized hole.
If its long, one is going to need a proper gun drill to make that first incision as it were. That will cost.
Next step is to get the hole to size – you just make up a big thick boring bar, or several if you are going up in steps. I did a TE piston rod guide with a 1.25″ dia bar carrying a 1/4″ bit inclined fwds at 45deg. I locked it in the 4 jaw since that gives a better grip than the 3 jaw. Best would be an MT and a drawbar I suppose.(and properly adjusted headstock bearings)
Bit has to be really really sharp and you just go backwards and fwds twice (I think) per size of cut to make sure all the spring gets taken out of the tool. Its not difficult, its just tedious.
The great thing about such holes is that they are always parallel (apart from the very first smidgen where the load is applied, and thats not going to affect us) If one has a sexy applier of the bit, then one can cut to size. Otherwise you get to a close size and make quill to fit. I’d finish size the quill with emery and oil to have a clearance of about .0005″
You do have a chicken and egg in that you need a quill to make a quill, and you have no accurate tailstock. So you have to make a plug for the Tstock bore to carry a centre, once you have a new aligned bore.
Or one finds a friend (if one has have any!(with machine tools)

), or you join the SMEE (plug for worthy cause

) if you live near London, and use their machinery.
—————-
Scrim – we have a problem.Several actually
You are talking about measuring with calipers. Calipers, even nice Mitutoyo ones are all well and good, but they only read to 1/2 a thou. They are nice quick and convenient. Accurate in the true sense of the word, they are not. We (Gray me and the others) are talking about measuring to 1/10 of a thou.
How can you set up a lathe straight, and talk of bed adequate bed fitting, when it would appear that you cannot, with the equipment you have available, measure to within 100% of the limits required?
So that is one direction that you need to go in – because you cannot set your machine up to do the preliminary work with a pair of calipers.
The other is away from hand grinding which I think you mentioned. Perhaps we are talking of different hand grinding, in which case I apologise in advance.
At the moment you have merely a dodgy tailstock, and you could get round that temporarily using an offsettable boring head fitted with a centre, or shims. Start hand grinding and you will have a glossy bit of junk which you will never repair.
This has been a very intriguing post, – I have enjoyed it a lot – but my most earnest recomendation is that you take the time to get the machine back to the suppliers, and get them to sort it. You write the cheque of course, and it will possibly be quite a large one, but not though as large as the one you may have to write if some of your suggestions are adopted?
If genuinely you have the expertise to sort this problem, good luck to you, and all credit – but if you have that expertise, why start this post? If you have doubts, then just throw money at the problem – its the quickest, cheapest and most painless way of making it go away.
Edited By mgj on 23/04/2011 12:45:39
Edited By mgj on 23/04/2011 13:13:47