I found another use for this grinding setup – a poor man's surface grinder
To digress: I bought an old Griptru chuck – something of a mistake because when I tested the chuck the inside jaws were completely useless. The outside jaws (and therefore the rest of the chuck) appear to be fine and hold true, but the inside jaws were so worn they weren't even gripping at the tips and you could see daylight at the ends 
OK, accepting the jaws were toast (I will have to look out for a replacement set) I set about trying to figure a way of re-grinding them, and my thoughts turned to the diamond cupwheel mounted on the mill. I checked the squareness of the wheel off against the mill table and as far as I could tell it was nicely orthogonal – although it's difficult to be certain because the face of the diamond wheel is not a smooth machined surface. Nevertheless an 8" square placed against the front edge revealed no errors. Good enough for an experiment then.
I clamped the 3 jaws together and used a parallel to hold them in line, and two clamps to hold the lot down onto the mill table. The 8" square was used again to align them all with the rear edge of the table and overhanging a little.
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I could only comfortably take 1/2 thou off each pass – the cup wheels are a bit fragile and I didn't want to break it. Grinding continued until the front of the jaws all looked the same, but by then I realised something wasn't right…
I expected more material to be taken off the bottom edge of the jaws than the top (in the photo above) simply because it was clear that is the way they had worn. However, with grinding complete I expected to see a nice even ground surface but what I got was a definite taper. Oops. It was as if the base (the teeth) of the jaws were not square to the front gripping surfaces. Not what I expected at all. I now realise what I should have done was mount the jaws upside-down onto the parallel because that surface definitely would be square with the inner gripping edge. So I'll have to do it all again.
I've lost nothing though because those jaws really were useless as they stood. I don't know if the jaws are hardened right through or a deep case, if the latter I may well run out of hard steel in the grinding process.
Chris