Firstly, Dabbler, you have my sincerest gratitude for taking the time to inspect my lathe and educate me at the same time; especially in light of the current pandemic situation. My shop, my equipment and my skills; as modest as they may be; are at your service and in your debt.
As far as the lathe is concerned, I am not sure whether to be happy that it's not the bearings that are the problem or not, but I will have to correct the problem at hand and I see post grinding the D1-4 spindle nose in my near future. I will try to get video footage or at least good pictures of the set-up and process when it happens.
With respect to the bearings,
@RobinHood and others who may be interested. I contacted Standard Modern for a quote for the main bearings for my lathe and specifically asked for the bearings that they use and I was quoted $300 for the assembly, so I can only assume that the bearings they use are C-2's and the same as quoted by TPL. In my research regarding the bearings I did stumble across C-3 bearings in stock for $770 USD ($1100 CDN) which is slightly more palatable than $1500 CDN and 6 month lead time provided by Motion Canada.
https://3bgsupply.com/bearings/roller-bearing/387a-3-timken
Lastly, I want to thank all of you who offered up advice, observations and encouragement. I was very concerned that I made a poor purchase and was going to be stuck with a lemon who's cost to repair would far outweigh it's actual value but with your help I have a clear path forward to grind / polish this "turd" into something I can be proud of.