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It depends on what you want to do. Long-range or other forms of precision shooting are going to require more precision in the manufacture of the firearm and ammunition.

An AK47, on the other hand, well the whole design is based around very loose tolerances for ease of manufacture and for reliability - not as affected by dirt, mud, sand, etc as other designs.

> I would imagine you would need precision to the hundredth of the millimeter when making guns?

You do for some types of shooting, but in general no.

And, even if you did, what makes you think that 0.01mm requires modern equipment?

Moreover, tight assembled tolerances don't require tight part manufacturing accuracy. You can hand-fit parts.

Here's a an older but still accurate article:

http://www.armscollectors.com/darra/darra.htm

and a more recent one:

http://news.bbc.co.uk/2/hi/south_asia/5066860.stm