I have been cutting two new spindle mounts this week to reduce the vibration of the spindle motor. After finishing the second one I had sent the machine to the home position which is where I usually leave it when switching it off. On travelling with the X axis I noticed a grinding sound. On further investigation I found this:

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Looks like the shaft I used to join the motor to the pulley had been working its way through the bearings and had the coupling rubbing against the motor mount.
I need to strip this out and make two locking collers for the shaft to stop it moving.
At least it hasnt done any real damage.

Ian