Just an update to this thread.
I spent some time with the lathe and a good file and some wax, but the issue is actually more than the banjo.
Upon detailed inspection this lathe bed (one piece casting) has been very poorly machined. Not the bed surface but the sides of the ways (if that's what they called). Not just the sides but the thickness from bed to beneath where the piece that locks in place slides.
I started to work on the sides but when I found the thickness varied I gave up. They have done such a poor and speedy job of machining you can see the cutter chatter on the edges of everything.
I would have to have my own milling machine to make it worthwhile fixing this bed.
The banjo and the locking nut that goes beneath the bed is better after some filing and waxing but sliding it back and forth is a mission without the nut being so loose that when the banjo lever is turned rotating the cam bolt, you nearly go over the top to loose again.
That's what was bugging me in the first place.
Its not that it all does not work. Its just how much you want to fiddle between movements.
I will look around in my travels and business dealings and see if I can get a quote on machining the bed.
The other thing that is a nuisance that Vaughn way back came up with a solution for, which I have since found out why it occurs is the spindle and the tailstock do not line up.
Why?
Well the Machine head is rotatable for overhang turning. The way this is achieved is a huge collar with slots cut in it as keyways into which a pin set in the front of the head springs allowing indexing of the head on this collar turret. The head is secured to the bed by the same cam locking arrangement. So loosen the cam and you can wiggle the head either way.
So if I wiggle the head with the tailstock brought up to the spindle and two centers fitted then I can get it so that the points touch but I have to make sure to do that with the tailstock pushed over hard to one side for consistent alignment and make darn sure the head does not move.
I got so frustrated and mad trying to fix this whole lot I closed up shop and came inside. But ...today I feel the challenge creeping on of fixing this machine so it works properly. Just need to find a small shop willing to do machining at reasonable price. That's a oxymoron if ever there was one for the GTA area.
There is a chicken and egg issue here that points at a new lathe in the future.
Turning on a machine like this is not fun. Its ok for a spindle with little accuracy needed like a tool handle etc.
So the result is one avoids playing on it. The other side of the coin is I am not that much of a spinny guy that I can justify a new lathe at this point in time given other things I want to do.
But winter is coming fast and I will go absolutely crazy now we empty nesters if I have to go without puttering/woodworking in the winter. Hand tools are my other option. So will have to see.
Thanks for the help guys.