Thanks for the reply's guys!!
Just got home from the day job and ran out to the shop. Using a dial indicator and the trammel method .....
The cutter is off from perpendicular to the bed by 0.13 degrees. That should be good enough. I could dial it in, if need be.
Will try another test with new settings (Female - 0,300" flat / Male - 0.150" start and 0.150" flat) tomorrow.
I'm having a hard time understanding how my setting (Female - 0.300" flat / Male - 0.200" start and 0.100" flat) could results in the gaps I'm seeing. Drew it up in CAD and it's such a forgiving method.
Very interesting issue. Always amazes me what one learns from problems.
Its a full moon, back out to the shop