I use a 4 jaw chuck,with a spider on the back end of the spindle.I put a best fit pin gage in the bore,and rest the contact tip of a Browne and Sharpe test indicator on the pin.The indicator has .0005 grads.
I indicate in both ends of the barrel.I have some practice at doing it,its not hard to get a TIR (total indicated runout,maximum + to maximum -) inside .0005.
Getting the last .0002 or .0003,well,depends on how much time you want to spend.Around there I say "Close enough"
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