Randy,
A couple more thoughts have come to mind.
If it's the arc movement causing the issue, the diameters will be consistent even though they are off. It wouldn't matter where you were along the X axis, a commanded Y position would always be off the same direction by the same amount.
But, if the steps per unit number were not correct, it could show similar results. The difference would be in measuring the movement. If a dial indicator shows .100" movement when you command a .100" movement, then your motor tuning should be good. But this must be measured at the screw and nut, not out on the arc movement where it could be skewed. If that shows any error, then you need to correct your steps per unit.
If all that is good, then you're dealing with the arc movement, and here's what I would do. Pick a diameter that is right in the middle of the range that I would want to use, and and adjust the DRO's there. So, if you wanted to use .750", I would cut a test piece using the jog functions and get the piece to the .750" size. Then reset your DRO to .750", and reference that axis at that number. (I'm assuming you aren't using home switches)
That way you should be accurate right in the middle of the range you're looking for. The variance might be small enough that it won't matter to you, or you could bump the program numbers a little to get it where you want it.
I'm curious to see how this works out.
Royce