still confusing is the total reading .005 then? or half of that reading?
the total is .003 as you are +.003 to the L and +.002 to the R
Which means the R is .001 closer to the center.
You did make sure your indicator was preloaded before zeroing it and starting your measurements RIGHT?
By preloading I mean that the stem of the indicator was pushed in .100" or so (usually and then the dial (face) was rotated till the Zero lined up with the needle
The reason I ask is because you cannot be + in both directions unless the opening in the bell housing is not perfectly round. It's not a bad idea to run a little 80 grit around the inside of the opening BY HAND to knock any burrs , excess paint etc off
If your indicator was preloaded and the indicator mount was solid, put it in and move on