Dial indicators, hammers, and carbide.

Lon,

The hammers are quite hard and will eat HSS for lunch. You'll need either braized carbide or indexible inserts to cut it. I just cut my 2240 down and it is a job for carbide.

The dial indicator you got will be just fine. I have the same as you. Although the adjustability feature is not the most rigid, you will get good results if you take your time.

Lightening up the hammer is one of the best ways to decrease momentum an therefore bounce. I havent' come up with the perfect weight, but around 35 grams seems to be working well.

I suggest you make a tight fitting pin out of aluminum or brass that will fit tightly into the bore to indicate center of the bore. Using the OD of the barrel is useless.

Regards,
MM