It sounds like your bearings to me. I don't know if you can tear it apart and see what is going on and tighten things up or replace the bearings, could be the main shaft and spindle arn't concentric with the bearings causing the runout. With the 4 jaw on there you should be able to dial it right in at one point on the work. Does the Lathe make any strange vibrations like bearing noise or something is out of balance? I'd take some 1" Drill rod have about a foot stick out, dial it in at the face of the 4 jaw and check the end sticking out for concentricity. that will tell you if something is not lined up right. Tell us what you find out, that's a nice size lathe for the home shop.
Carl


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