I'm running an SC4 type lathe. As I am turning down a grade 5 bolt into a small part, I find that by using the carriage wheel I can get a wonderful finish. When I use the compound rest to run the tool parallel to the ways I get a 1 thou variation with my indicator every turn of the wheel... So every 50 thou. that produces an rather unpleasant finish. I have the compound rest and tool post locked down. How can I remove this error? The wheel is a bit tight to turn. Do I need to allow more play in the wheel or is there another issue?
What are you using as an "indicator"? (micrometer, dial test indicator, something else). How is the indicator set up?
The way grade 5 bolts are made, and most any bolt or fastener of the size that fit in your lathe, is by a cold forming process. The heads are cold forged and the threads are rolled in. This introduces stresses on the surface of the material that go even deeper than the minor diameter of the threads. After cold forming, most are heat treated which relieves some stresses but introduces others. These stresses vary over the length and width of the bolt. A bolt is a finished product and meant to be used as-is. For this reason it can be difficult to get a nice finish on any brand or size of machine with just about any kind of cutter. Grinding can give very nice results but it is a slow and messy process on a lathe.
Unless there is some compelling reason to use a grade 5 bolt then you will be better served by using some material that is more homogeneous to begin with.
The compound is not the best way to turn a parallel cylinder on a lathe. The compound can do short tapers, chamfers, and transitions or shoulders. For straight turning you have the carriage with a nice power feed to keep things smooth and consistent. If you are trying to use it for turning a precise length you will get better results using longitudinal feed (hand or power) and carriage stops, DRO, or a long range dial indicator.
In other words... without discussing the particular brand or size of machine you have, your problems are a combination of choice of material and method. You could well get the similar results on a Hardinge HLV using the very best tooling as you are getting on your particular machine and tooling.
-DU-