Your chips are indicating very hot. The odd one might bounce a few feet but if its spraying 4 feet, that crazy. Are you still at 1000 rpm like post #1 or have you since reduced speed? Dumb question but are you sure its 1000 rpm? Maybe a different sheave combo was swapped on the drive line or motor was replaced with another at some point? Same slug of plain 1018 so not mystery metal. Swapped the cutting tool, tip is centered... I'm running out of ideas. Have you tried another piece of steel with the same setup & you get the same results or these issues came about with this particular slug?