OK here goes:
.007 tramming won't quite do in this scenario. there's a bunch of factors, and I'd have to see your machine before trying to be too specific as to what went wrong. I was hoping for around .001 or .002 tramming, which should be doable on your machine. If your table is too rough due to the rust, etc, hand stone out the biggest lumps and place a parallel on its side for a reference surface. Get it trammed in X, then roatate the parallel 90 degress and tram in Y. Repeat ad nausium until your tram at 5" or so is in the order of .002 or less.
To fly cut the table:
You need a pretty wide arc fly cutter, in the order of 4-4.5 inches. You can research which one you can afford.
Move your table to one side and rotate your head to that side. You want to be able to cover the corner of the table.
Take a cut moving the table toward the centre as far as your lead screw takes you. Repeat until your surface is acceptable.
Now position your table and head to cover the other corner of the table at the same end, and take your cuts until you just intersect the other cut. this is why your tramming has to be good. If you could using a 9" cutter, you could do it in one pass and it would be self correcting.
Repeat, starting at the other end of the table.
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Waaay back when I had my first mill, my T slots were wide enough for a 1/2 inch hold down nut, but the slot was too narrow for a 1/2 inch stud. So I did this exact same thing for my slots and opened them up .010 to use the bigger hold down set. The joins of the milling cuts were within .0005 and could only be read on a tenths indicator.
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Let me know what parts I may have left out, and what needs further explanation.