I did tear down the spindle this afternoon. I'm glad I did as there was crap in there and the nose bearing probably wouldn't have made it much longer before failing.
CAM for lathe? Probably none, unless I get some complex parts to run. My old man has been hand coding lathes for 25 years. I do actually own a license for bob(crap)cad with lathe, but I've not used it. I happen to bump into a guy at NAMES last year who did a Compact5 CNC with a toolchanger who is local, so that will be a great help. I chose an AC induction motor with VFD as mentioned above. I do think this will work OK, but I don't know how deceleration will turn out. The AB VFD on my Clausing will stumble if I lower the speed too quickly. I haven't looked into the spindle encoder very closely yet. I do intend to do better than just one pulse per rev.
I did also track down a 4" 3 jaw Microcentric air chuck and tube for a grand total of 120USD. So, I'm glad I didn't rush and order that TOS chuck. Ebay yields great finds if you're patient.
I still have the bed and carriage of what was a central machinery 3 in 1, that was going to be my CNC lathe project. I was planning on QCTP for that. I still haven't figured out how to do manual tool change on the mill with LinuxCNC (actually still running the old EMC2.2xx). I just make separate programs. I did see a nice manual tool change program for Mach on youtube recently. I'll have to revisit the Linux CNC forums, it would save me some time. Tool table in LinuxCNC seems easy and I use it for radius compensation for thread milling.
It seems like tooling alone will be a fortune. I'm buying external holders when I find them cheap enough, boring bars seem expensive and lefties uncommon on Ebay, and have 3 ER16 collet holders already.
BTW, Some of the first parts I hope to run will be Cox related.
Greg