Hi Luke,
I'd say the backlash is OK. Especially if you are in MM and not inches. Resolution plays in but you should be good there.
Next thing would be to verify squareness. Indicate one edge of the most precision square you have true to x or y and clamp it to the table, then check along the other edge by manually jogging.
Or, if you have a good straight edge, you can place 2 sheets of material on the mill (as large as practical) atop of one another, mill 2 adjacent sides untill they clean up. Un-clamp and flip the top piece (book-match) and check the other 2 milled edges with the straight edge. Done carefully, a good straight edge will display squareness to within the amount of error you are seeing.
A good (large) machinist would be best though.