My drill press has a slight wobble in the chuck that makes it difficult to line up the contact point of the bit and the wood when it is rotating (on a 1/8 inch bit the wobble is roughly the width of the bit). I've checked to make sure there is nothing stuck in the jaws, and I've checked to make sure the bits are actually true. What is the best method to go about adjusting the chuck itself?
If you have a dial-indicator to check alignment, you can often fix it with a couple of well placed smacks, or worst case - popping the chuck out and re-sitting it to fix the alignment issues.
I had similar issues with my el cheapo drill press and used the info in this PDF to resolve: