There is an air bearing spindle construction article in the Philip Duclos "Workshop Wisdom" and Home Shop Machinist publication - Mr Duclos calls it a 'floating end mill sharpener' is your air bearing spindle based on this ? I'd post a copy but I believe it is still copyright.
I've just finished a tool and cutter grinder and intend to add an air bearing spindle sometime in the near future, it is interesting to see yours in action.
The Nov/Dec 1999 and Jan/Feb 2000 Home Shop Machinist magazine has a series of articles on improving the Quorn tool and cutter grinder, one of the improvements is an air bearing spindle the construction of this is described along with drawings, it looks to be based on the one designed by Philip Duclos - it doesn't look hard to build but the spindle and the bore it fits in must be parallel within a tenth of a thou or so, so you need to be prepared to do some lapping to get the required fits, if someone can confirm that it is ok to share this I'll upload it to the downloads section - I did read somewhere that a single article from a magazine is ok share.