Now to be more helpful than my first post 
. A new lathe should have been set up t turn nice and parallel but might have been miss-set by a trainee, knocked, have a dead fly trapped under something etc, Also just putting a straight bar in a 3 jaw chuck doesn't mean it is sticking out dead straight, they aren't that easy.
First check. The headstock might not be pointing straight down the bed. Put a new bit of round bar about 9 in long in the chuck and check it by the chuck using a dial test indicator for the error as you rotate it. Mark and record the peak as it won't be dead true. Then go to the end of the bar and test there gently tapping until you get them to the same error in the same place (note not perfect at the outer end – the same). Now your bar is parallel to the spindle even if it wobbles a bit going round. Now run the test indicator held in the toolholder along the side then top of the bar. Any error here is the misalignement of the headstock and is the first thing to correct.
(Don't bother with expensive morse taper test bars while a beginner.)
Edited By Bazyle on 05/11/2012 12:28:25