When the spindle is reground to a R-8, they do not drill and tap a hole for the dog point set screw. The spindle is harden. What you have to do is hold the collet still while you make up the draw bar. You only need about an 1/2 of threads engaging the collet or arbor. My mill had a setscrew in the spindle. I took the set screw out and tossed it in the trash. They can cause trouble in life that will turn things into nightmare in a heart beat.
If you are having troubles making up the drawbar, pull the draw bar and clean the threads and chase the threads with a die nut to remove any damage to the threads. Clean the threads in the collet. It's hard, be careful trying to chase the threads, could break off a tap. Ken
Edit: Glad you were able to get some of the alignment issues resolved by a little bit. Sounds better anyways.