Here is what I found on the net. I guess I should have looked a bit more before asking a stupid question. I found two nice sites describing what to do. Looks easy enough. I purchased some lapping compund from ENCO for 13 bucks. I will try it this weekend when my shippment arrives. I'll let you know how it goes. I have already taken the Y-Axis apart. Here are some before hand pics of the gouges in the ways and gibb.
www.mini-lathe.com/Lapping/mt_lap.htm http://home.inter.net/mthomas/Lapping1.htm