The lathe is mainly intended for 'tuning', in which the work rotates against a 'fixed' (actually slowly moving) tool producing cylindrical parts.
In 'milling' the cutter rotates and the workpiece is 'fixed' (actually slowly moving), producing flat surfaces.
Both Autolock chucks have No 2 morse taper mounting, which is more flexible than is ideal, but which suits the machines. The upper one has a backing ring, which can allow a more rigid setup, but has only 5 collets with it. The small plastic boxes with the lower one may contain additional collets for holding different size cutters. The collets come in imperial or metric sizes. An imperial set includes 1/4, 3/8, 1/2 & 5/8, while the metric ones are 6, 10, 12 & 16 mm. The metric ones, as visible in the lower set, are identified by a groove round the 'ears'.