"BINDING". There was binding, but it was entirely the dust collector system. I adjusted the dust collector nearer to the blade and the binding ended, but now I get a lot more sawdust dropping. It is definitely not a tight system with large openings. Is there a thread about how to "fix/improve" the dust collector?
"TABLE SHIFTING". Drew a line on the main table (left to right) in line with the center of the axis of the spindle. This line I planned to use as the only place to measure if the blade was perpendicular. I placed a 2 foot level (tested accurate by reversing it on a level workbench). I followed the instructions (above) raising and lowering the table while observing the level. To those instructions I added an observation of the "locked" and "unlocked" change in level. The level had to be shimmed .013" higher on the right side when the hand wheel is unlocked than locked. Locking the hand wheel definitely shifts the table. I noticed that the bottom of the table on the left side was resting on the headstock casting, so I used the micrometer-stop vertical tube accessory to keep the front vertical tube lifted 1/4" above "bottom".
"LOOSE VERTICAL TUBES" - not loose when locked, not sticking now that the dust collector was moved. Tubes look like new. BTW, I bought this DEMO from SS as a 510 and it has been upgraded to a 520. It has not had a lot of use since I have had it.
"SETTING PERPENDICULARITY". With the table riser locked in the bottom location, the table was adjusted to 90 deg to the blade. Made a "test cut". Good. Raised the table, watching the level and locked the table riser. It is then the I realized that there was a problem with method I used to check if the blade (sticking above the table by 1") was perpendicular. As someone had noted, there is some taper in the blade (.001") at the outer edge. I then removed the zero clearance insert and held a straight edge down to the blade hub securely against the blade and with my third hand, place the square against this straight edge. It was good. Checked the protractor/pointer on the front trunion. It was "off" by one line. Aha! Now we are getting somewhere.
"TABLE NOT FLAT" Discovered that the table is not flat. There are high spots. One of them is located on the right side of the blade and it is the right side of the t-slot that is raised, measured to be .002" above the rest of the table. When a straight edge is placed from left-right to the right of the blade and it is pressed down, it rocks and when it is (in PLAN view) shifted, the point of rotation is at this spot. Also found another similar spot to the left of the blade and nearer the operator. This table, btw is the replacement table.
"TRUNIONS AND CROSSBAR" no cracks or tightness.
"New tool" I took a straight 3/4" x 5/8" x 8" birch-ply stick and added to high strength magnets. Used this against the blade to hold it there while using a square to gauge perpendicularity. "Patent Pending"

You'll see this in the next ShopSmith ad !
Is there a thread that discusses a method of minimizing the changeover hassle with the outer table when changing table height?
I want to thank everyone for their ideas and suggestions. Every suggestion helped a lot. Thank you all!
Paul