Keep your lathe as is and listen to these boys. As a 40 year electrician working in the industrial world there is nothing finer than a VFD. You will need a keypad or remote pushbutton station for the operator but a little flex and wire and you got it made in the shade. I don't hear anyone speaking overload protection. It's provided at no extra charge in a VFD. Jogging, plugging, preset speeds, soft start, timed acceleration, timed deceleration, 120 or 240v 1 phase to 240v 3 phase transition. Full reversing capabilities, motor monitering, RS232 output to computer control, RS485 on some units. And more way over my head.
Do I need to speak of the futility of a phase converter in todays world? BOAT ANCHORS!!!!! If you do use a phase converter you STILL need to install a magnetic or manual starter for overload protection. That drum switch is only for reversing, nothing else. If you have a reversing starter you don't need the drum switch. Then you still need the control station and more cobbeled up crap. VFD, one box mounted at operator height (out of the chips) and the buttons and display are all there.
Need I say more? If so I can help. Half the time the customer supplied the drive so I have installed more brands than I can begin to remember. For a seemingly good for our use, resonably priced unit check out TECO. Sorry, lost their address but in talking to users and reading the results I will give them a go the next time I order one for myself or a friend. Remember, price comes in second to the help you get from that supplier when there is a problem. Makes that cheap price real expensive if you have a useless piece of crap on your hands and no return or support. Trust me, been there.
I sing the praises of the VARIABLE FREQUENCY DRIVE. :soapbox: