Thanks for the replies. I managed to get a dial gauge into the large groove in the motor pulley and got about .018" TIR out of true. Took the pulley off and put some 5/8" silver steel in the chuck and fixed the pulley onto it using the pulley grub screw.
Using a mandrel handle, I re-cut both grooves – the larger at 38 deg included angle and the smaller at 34 deg.
What a difference! Not perfect on the higher speed, but much better and usable.
The only difficulty I had in re-cutting the grooves was trying to see the angle scale of the top slide. Need another scribed line at 90 deg to the standard one, I think.