<snip> There is a spot on the reel where its probably 3/4" out of round. I'm not sure what the tolerances are for machines like this.
Is the "out of round" spot only on one side of the basket...sort of a circle with a bulge in one spot? Or, does the basket have a very slight oval shape to it? If oval then the "high sides" should balance each other and the "low sides" should, also...thus no "out of balance" issues. If there is a bulge in one spot around the perimeter of the basket then you have somewhat of a problem.
Seems on an extractor of that size/$$$ that the tolerance should be a bit closer...but I'm new to extractors and it maybe be a common malady. The basket on my mentor's 9-frame SAF spins true and balances with little thought put into it. From your statement it sounds like you have a single spot that is bulging...I would call Dadant and see what they say.