I've just had a look at the PM Research site and the Red Wing engine.
Normally, the flywheel diameter is the limiting factor for lathe work. Other bulky bits would be machined on the mill. However, without the use of a milling machine, you would need to hold the crankcase on the cross slide. Do you have sufficient cross slide travel to clean up the bottom? Will you have sufficient centre height to machine the crankshaft bearing housings with the base at the correct angle?
You do have Tee slots on your cross slide?!
Maybe possible, but you would need a lot of 'out of the box' thinking.
Just my opinion, others much more clever than I could offer solutions.
Dave
The Emerald Isle