I gotta tell you, as wrong as it is, every machine shop I worked at cheated when it came to regrinding or redoing the spindles on lathes and mills. I just did this last week on a Turret Lathe we had.
You make new jaws for the thing and then bore them out with the right sized drill bit chunked into the tailstock. Its not right, as you should really figure out why the head, jaws or whatever is off and correct it that way, but the railroad, Lie Nielsen and even my current place of employment uses this method to "get by". I doubt you will find too many lathes and mills out there that have not been "reground"...this guy just happened to know and said it like it was. I can't fault the guy for that.