Thank you guys for all the help and info. I'm going to get another bore light and try running a patch through it. I'll start there and decide what to do if anything from there. Hopefully it shoots straight and I'll leave it alone.
If the bulge is at the end of the barrel, I would not be very concerned about it from a safety aspect. I will explain that later. I have a 270 Win barrel that I did not notice the dark spot at the end of the barrel till I bought the thing. It probably had been fired with snow, of something stuck in the muzzle and it had a dark spot that rotated when the barrel was rotating, indicating a bulge. That barrel would fling rounds, get a half decent group and then the thing would fling one way out. I sent it to a gunsmith who counterbored the thing and then it shot round groups, not particularly good round groups, but they were round.
If the bulge is further back in the barrel, lets say midway or closer to the chamber, I would recommend scrapping the barrel. If the internal diameter of the barrel has been permanently stretched, then the material has been stretched beyond yield, and it is weaker than it was before. The barrel is a pressure vessel. And it expands as a bullet and gas go down, each shot. The risk is, a weak spot in a barrel, given enough shots, or a high pressure round, the barrel could burst at that spot.
This was not a blow up due to a bulged barrel, but due to a rebored barrel. I disagree with reboring used smokeless barrels, barrels are not meant to have an infinite number of load cycles and this barrel was enlarged to a 35 Whelen, from what I think was a 30-06. The barrel was old, had been shot, it was a vintage barrel so the barrel materials were probably not as good as today, and the thing ruptured. The shooter was lucky it did not blow up where his hand was located, or blow up at the chamber. Barrel blow ups are dangerous and unpredictable and it is not worth getting hurt over some $200 rifle, or even, a $2,000 rifle.
MY GUN BLEW UP!!! Full disclosure on page 4 UPDATE.
http://forums.accuratereloading.com/eve/forums/a/tpc/f/3221043/m/8041046622/p/1