OK, very helpful to know what you are planning. I had a pm-1340GT, have probably done 50 or 60 VFD installs on that lathe, and numerous others on other machines. My recommendation is to go with the 3 phase motor and the VFD. You only need a 2 Hp VFD, I recommend the Hitachi WJ200-015SF sold through QMT or online vendors, because everything is already worked out for this model. This particular lathe greatly benefits from the use of a VFD. You get soft start, very fast braking on the order of 1-2 seconds, variable speed, and a lot of other VFD features. That particular VFD will run off of a 230VAC 20A breaker, although the manual recommends 30A. Everything is spelled out in this previous thread, the most current wiring and programming parameters are listed on the last page. By flipping the motor pulley you can convert it to a single belt speed lathe, but you still need to use the gearbox to some degree. The VFD range is around 20-100 Hz. If you have some questions when you get into it, I can give you some assistance, just PM me.
Many individuals buy the PM1340GT lathe as a 3 phase machine with the intent to convert it over to a VFD system, the usual VFD that is used is the Hitachi WJ200-015SF. Unfortunately the conversion often requires a somewhat complex and costly conversion process to optimize many of the VFD...
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As far as what you can do on the lathe, David Best completely tricked out his 1340GT, he works a lot in SS and take some monstrous cuts and pushes his machines hard. It hasn't let him down. Sure you can get a bigger and heavier lathe, but it will cost you 2-3X as much and accuracy wise there will be no difference. I have had both, so can verify that they both do great work. It is all to a price point, but if you want a very nicely built lathe, I recommend the 1340GT. I sold mine to a full time gunsmith when I moved, he had a bigger lathe but ended up using the 1340GT for most of his work.
It’s been several months since I took delivery of, and posted about my PM1340 lathe. It's time for an update since I’m nearing completion of what started as a straight forward VFD conversion project, and then took on a life of it’s own and led to a substantial customization of the stock PM1340...
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On the mill, depending on the model and Hp, you should be fine on a 20A 240VAC circuit. A 3 Hp motor may or may not be ok on a 20A circuit, there are different factors that come into play. One advantage of a VFD (variable speed models)is the soft start is less likely to trip a breaker.