stu writes:

The change gears are misaligned. The smallest gear is 10 mm thick, the
gear it drives it 8.3 mm thick. They are offset by 2.8 mm, is this
normal or should I pack the small gear out 2.8 mm?

Sounds like my Chinese lathe of similar size, as others will also attest.
The change gears lined up, but the swing arms and all were hopelessly ill-
fitted and couldn't have possibly passed any tests. Took a few hours with
turning and filing to get things fitted, but now it is perfect.