I have used a lathe to see if a shaft is straight, but have never used a jack in the lathe to straighten the bent shaft. How does the chisel come into play?
I'll bet your spindle bearings are taking a beating. They weren't meant to take that kind of stress. They are axial bearings or tapered roller bearings. Not a good thing to do to them in IMHO.
"Billy G"
You may want to check out Keith Rucker on U-tube. He does some straightening with heat, that may be better way to go about it. He straightened a wood shaper shaft. He quit at .005 I think.
Paul
I would be concerned that it might crack the tailstock casting where the plunger comes out too. They don't leave a lot of extra material in those parts and it would be a weak link if you put on too much giddy up with the jack.
Bob