Pat,
I commiserate with you having suffered similar tailstock issues on this lathe and another smaller sino lathe.
I am no expert but from my understanding, this is not an uncommon problem. I had the same lathe and encountered similar issues with erratic tailstock readings. In my case, the problem was due to an incompletely reamed MT2 taper in the barrel, but even when this was sorted, I spent the best part of half a day setting it to be collinear with the bed and centred on the head.
Before even considering shimming the headstock, I would advise the first action is to check and confirm the headstock spindle is collinear with the bed in xy and zx plane. You will need preferably a 3 MT test bar or 3/2 MT sleeve. If it appears the spindle is aligned accurately, move on to tailstock (if the spindle is not aligned, depending on severity,you will have to decide whether you wish to attempt to rectify yourself of contact Amadeal and request a replacement).
Next ,check the fitting of the MT2 test bar in the tailstock and absolutely confirm that you can see no play in the taper as it enters the barrel (push backwards and forwards with some vigour to confirm this). In my case It took me a while to recognise that the MT2 was only being griped at the narrow end and there was 10 thou of play at the front of the barrel (partly because I didn't want to believe it!)
With headstock spindle alignment checked and the MT2 in the tailstock fully retracted, can you get the two centres to line up point to point perfectly? (the ruler on the points trick will be an adequate test of this). Do the points stay fully aligned when the tailstock barrel is extended? If not, perform whatever adjustments you can on the tailstock and repeat tests. It is more of a concern If the tailstock is significantly too high when the barrel is retracted, and at this point you may wish to contact the vendor.
You don't say whether you are testing with barrel in or out and whether you have clamped stock and barrel for test and tightened carriage gibs, so will assume you have. After the tests suggested, if there is still a significant rise on the test bar, then the issue could be with the barrel bore or tailstock mating surfaces.
In that case you may be able to shim one end of the tailstock body to sole plate so the barrel is not pointing at the sky while still getting the centres to align. This worked for me on a similar class of lathe, but took hours of to-ing and fro-ing to get to the point where drills could be used from the tailstock without obvious flexing and binding.
It may be that the solution would turn out to be skimming the tailstock – an awkward job so I would see what the vendor has to say if this is the case. You should not have to shim up the headstock for a misaligned tailstock, but it would be a solution in the last resort.
Martin