The runout isn't much. It's about 10 thous. I measured it using a couple of 1/2" router bit shanks. The runout at the body of the chuck is about 1-2 thous. So I think it's the jaws that have problems. I tried cleaning the jaws but it did not make any difference. I am tempted to just try filing the jaws...not sure about a proper way to do it, though.
10 thous runout isn't a problem most of the time for me. However, when coupled with a slight runout on the bits, it adds up and caused problems in a few times I need to be precise.
Any suggestion?