Thanks again Gray,
Well I followed your instructions and removed the quill from the FB2 in prep for installing a replacement I ordered from a guy on eBay. I also removed the top fiber gear on the gear case and top quill bearing / drive gear assembly. On removal it was clear that there are rub marks on the body of quill above the o-ring. Attempts to reinstall the quill with its o-ring removed were again confirmed it was binding when inserted about 1.5-2 inches in to the quill bore. The bore itself looks very clean and smooth. Since I had a replacement quill on the way I decided to try something that will probably elicit some groans from the readership; I chucked up the quill into the lathe and sanded it lightly with 240 grit and 400 grit from top to bottom, then cleaned it off and tried installing it back into the bore. To my surprise it went it much farther but was still binding up. So I chucked it back up and hit it again with the 240 and 400 grit sanding. Following this second pass the quill now goes into the bore and operates smoothly, but is still tight. Re-installing and lubricating the o-ring then installing the quill feed pinion it operates smoothly over the full range. Perhaps I didn't need to order the replacement after all, and will need to resell it on eBay myself… All in all, it's been a good educational process.
Best regards,
Bud