I guess the steel wheel is bent. I laid a piece of heavy angle iron across the top of the machine to use as a gauge to see how out of round the wheel is and where. Moved it on the spindle a couple of times and moved the cone but it still shows up in the same area. Its about 6" of being low and wobbly on the inside. Also happens to be the same area the balancer is asking for weight. The outside called for 0.
Not sure if this would affect the calibration since I am adding 3.5oz of weight. This machine only calibrates on the outside of the wheel, and only one time.