Well, I had to un-modify the project as having the screws to the chuck side just doesn't work.

I swapped the holders front to back and was able to trim the gibs just enough to nudge them to a good fit. While I had the carriage off I added a .003" shim to my carriage lock so it's a bit more agressive. I also drilled and tapped 8 8-32 holes for adding felts and wipers later. I shimmed the rack gear down for better engagement with the feed gear in the apron and put a washer behind the carriage handle to clear up some of the slop. I stoned the ways ever so gingerly, cleaned it all off with WD-40, added a good coat of way oil and reassembled the carriage.
This lathe is NOT the same machine that was sitting on my bench yesterday! The toy feel is gone and it now feels like a precision machine!! I took .050" facing cuts with and without the carriage lock engaged...no movement either way. I parted off a piece of 1/2" mild steel as fast as I could hand feed and the lathe just smiled. On turning cuts I took progressively deeper passes up to .050" in steel which this machine never liked doing before. My main stock and trade with this lathe are parts made from 5/8" 4140 annealed. I have to part off sections .080" thick. I think the work will be a LOT more pleasant now!
If you have a mini-lathe and haven't fitted tapered gibs to it I highly reccommend it as your next project!!!
Thanks for the inspiration and the most helpful post on fixing Darren's lathe.!
