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“Out of round” or “Run Out” is how much the bit “wobbles” in the collet.
There is another thread where @AllenMassey posted a spread sheet to help with feed and speed calculations for the Dewalt. You may be able to use it for the stock spindle.
You might want to try reducing your cut depth instead of slowing your feed speed. It seemed that faster speed with shallower cuts is better?
If you are still having problems and are in a experimental mood you can try replacing the stock spindle with a Dremel (assuming you have one handy) and see if that makes any difference.
I recommend eventually replacing the stock spindle. But unless it is actual going bad you should be able to get pretty good results with wood