So, to report what happened...
The lathe did get a rebuild. All surfaces machined and scraped, etc. It even survived the trip home. The guys doing the work said it was worn about .030 between the bed and carriage.
Once home, it took some time to get it level. Spend about two weeks fiddling with it. Found some paint between the cabinet and bed that needed to be removed, etc. This crazy machine has 8 leveling screws under the cabinets. As much of a PITA as it is to level, it gives many many degrees of flexibility to true it up. Ended up cutting steel pads to sit on delrin blocks with very thin rubber between them for leveling feet. Stout enough to spread the load, but won't slide, etc. With a test bar, and tenths indicator there isn't any change in 10" of bar.
I see about 1/4 to 1/3 of a tenth if I stand on the floor near the tailstock!
Overall very happy with the decision. Finally had a chance to turn some parts on it. Cuts nice, much less chatter with heavy cuts, and no taper. The limiting factor in hitting a diameter is 5um cross feed scale. Eventually I'll pick up a 1um scale, which should help a bunch. This machine will hit tenths easily now, just need the scale to see it!
The last missing item for the lathe is a steady rest. Picked one up, that's just a bit too tall. It looks to be a really nicely made little rest. The plan is to fit it to the lathe, by cutting and TIG brazing or nickel welding it back together. At that point I'll body fill the cut, and repaint it to match color wise. It only needs to be shortened by about .875". It's a nice rest with very fine adjustment in the screws.