Jones'R,
Your setups are only as limited as your imagination and resources. I always preferred setting up on a rotary table (easier alignment and it brought small parts up closer to me), but a good set of parallels and t-slot clamps work well too. Your RPM's are determined b your air pressure settings. There were 3 different RPM heads, a 40,000, 60,000 and 100,000. 40K head was black and kind of cylindrical, 100K head was silver and cylindrical, the 60K head was standard and started out about 2 1/2" in dia. at the bottom and ended up about 6 1/2" at the top with large radiused sides.
Your air pressure working range for each head is 40 psi at the low end, 60 psi at the high end (for most grinding applications). 60 psi for stone wheels for sure. Prior to dressing the sides, use some carborandum to dish the bottom of the wheel so there will be a sharp edge on the sides. Dress your wheel with a diamond, preferrably held in a magnetic v-block (to keep it ridgid). After the wheel is dressed cylindrically, relieve all but the last .1" at the end so you're only grinding with that small amount of wheel surface contact. Set the spindle for length of stroke with the 2 small knobs above the handwheel on the right. Use your T-handle allen wrench to adjust the air head so the wheel is just barely touching the side of the hole then switch to the graduated feed on the top of the machine to control size. Flip the lever on the panel to start the head running, press the button to start the oscilation of the head and the other button to start your stroke. Starting out, limit yourself to about .002" feed and let your wheel spark out before taking your first measurement. I used Starrett small hole gages and a good micrometer to get close, then switched to Deltronic pins for final fit. There is a whole lot more to consider as far as positional accuracy and alignment but I'll assume that you already have that covered. I'd be getting a dryer in the air line for this machine, those heads used to be several thousand dollars to have the bearings replaced. I haven't jig ground since 2000, but if you have any specific questions, fire away. -Mike