Thanks for the above responses.
That was a good suggestion to use V-blocks and a machinist's table but unfortunately I no longer have access to that equipment ( I was a student at a tech. college ).
And yes, I did remove the chrome plating prior to using the Cyclus tool. For information, I thought this tool was high quality ( the cutter cut very well ) and I think it squared up the seat, but perhaps I did not remove enough metal to complete the procedure.
The problem
I think I had, was when I initially fitted the crown race for what I thought was the final assembly, I noticed a little sliver of light between the crown race and the fork seat, in the same spot relative to the fork (I refitted the crown race turning it to a new position several times) when I held the fork up with a light source behind it. This made me think the crown race was not sitting on a square fork seat. As seen in photo.
As the headset was kind of costly ( Edco Competition ), I didn't want to just ignore the issue as I wouldn't think it would last long if the forces in operation were all on a few caged balls instead of being shared equally.
I have no pre-existing knowledge of whether the fork was satisfactory in previous operation as I bought it as a frame and fork ( 1986 Peugeot Aneto ) about 10 years ago and finally have decided to use it for my main ride.
As much as I love Peugeot, I am not so sure this fork was machined perfectly as the chrome plating was present ( before I removed it ) indicating this was how the factory sent it out.
And also, with a quick trial assembly ( after the light fork seat cutting I did ), I am still getting a slight "tight then looser" observation when the fork is rotated in full circles, tighter at the same one point and looser at the same 180-degrees-away point, although I no longer can see the sliver of light under the crown race.
