That gear looks rough indeed.
And it makes me wonder what incident caused that much trouble ?
A big jam that damaged other things ?
I think the headstock bearing are pretty hardy, and perhaps poured babbitt or bronze ?
The lathe seems like it has seem some use, but does not look too bad all things considered (depending on exactly how much it cost).
From the photos, it looks like you will have to pretty much check everything and see how much work will be required to get it into the tolerance range you need/want.
When I get a used piece of equipment, I assume that anything that can be adusted incorrectly is adjusted incorrectly.
Edit:
A quick glance on ebay seems to indicate that an ML7 can potentially be worth their weight on gold.
One is listed for $6,000.00, marked down from $9,000.00.
Another one more reasonably priced at $4,000.00, that looks like it is in very good condition.
Edit02:
I don't recall seeing the three white speed control ? knobs on the top left on a Myford.
How do those work ?