JB, if you are looking at a small lathe to start with and learn with, I would suggest looking at the 7X14 sold by MicroMark. Yes it is a small lathe, Yes it is often referred to as a "Project Lathe" in that you will need to do some smoothing and tuning to it to get it up and running smoothly. On the other hand, for under $700 you will end up with a nice little lathe, doesn't take up much space and can be moved around if need be. There is lots of info on the web about these small lathes, check out
(You need to Login or Register to view media files and links). There is also a groupe on Yahoo for the 7x12 lathes, lots of good folks there and an excellent source of info, all kinds of people from the totally inexperienced to the experts.
I have one of the MicroMart 7X14 lathes and I am pretty happy with it. You just have to keep in mind that it will not hog off a lot of material at one time but take you time and things will come off and make lots of chips on the floor. They will also cut threads, both English and metric. If you need to get tooling for these small lathes,
(You need to Login or Register to view media files and links) is probably the best source out there. I don't think that there is any part on those little lathes that they do not carry.
The only major repair that I have had to do to mine is to replace the headstock bearings with taper rolling bearings. I did that over a weekend and I think total cost was under $30.00 or so.
Hope this helps you out some.
Sam