My gut feel is that 2 thou runout is quite a lot. If I understand it correctly from
http://www.lathes.co.uk the Raglan ‘Five’ has taper roller bearings. Just out of interest I’ve been out in the workshop to measure the runout on my lathe nose spindle. It’s a D1-4 fitting, and the spindle runs in opposed taper roller bearings.
Measurements were made using a Mitutoyo 0.01mm DTI. Measurements are:
Inner MT5 taper: 0.005mm
Short Outer Camlock Taper: 0.007mm
Outer Diameter (plays no part in locating the chucks): 0.01mm
Front Face of Spindle: 0.01mm
These measurements are from a 30 year old lathe.
However, before we panic and start stripping the spindle it might be worthwhile discussing the measurement technique, so as to be sure that the runout you are seeing is genuine. For instance did the needle move smoothly as the spindle was rotated, or did it move in jumps? If the needle jumped is there any corrosion or pitting on the spindle. Were the readings repeatable from one rotation to the next?
Regards,
Andrew