dhammer:
Go for it! I have "modernized" four old lathes now, 2 16" South Bends, 1 20" Walcott, and recently an 18 in. Hendey, circa 1921. I install large motors, real transmissions, and poly or banded V belts to the largest flat pulley. You will have plenty of poopy for carbide or any other tooling you wish to use.
The Hendey I recently finished has large tapered babbit bearings in oil bath. With the top speed set to 650 rpm and 250 lb load (12" four jaw + peice), I ran the machine solid for 4 hours with a pyrometer attached to front spindle bearing. After 30 minutes the temp rose 15 degrees above ambient, so I changed the oil from 20w hydraulic to Mobile light spindle oil. The temp never rose again. Sold me on spindle oil forever. With the addition of a VFD, I have since increased the top speed to about 800 rpm.
In the Walcott I installed Bronze headstock bearings and a top speed of 900 rpm, and the bearings would seize if you didn't loosen the caps and let the oil flow. It seemed to run ok at 500 with a drip rate of say, 1 per minute.
Now, All this being said, The machine cannot take the huge bites that you will with modern lathes, but I can get pretty rough with a piece of 4140, and drill 2 inch holes, the old girl takes it just fine.
Also, you WANT to buy insert tooling on ebay, there's so much to choose from, and great deals are there if you are patient.
The Hendey is the first rebuild that I photographed and you can see it on my new website at
www.lesebergs.com
Good luck, and make some blue chips!
Ed