I have the same model lathe, just newer (S/N 953). Your QCTP should work although you will need an 1/8" shim washer under it in order to have 360º rotation. Some have modified the compound to get the clearance but I would not recommend that as it will weaken the already fragile compound.
Although you may be able to mount 1/2" tooling, I would advise against it. There is no benefit from the increased rigidity, the tooling cost more and in the case of HSS or brazed carbide tooling, it is more difficult to grind. The compound becomes the weak link and is more likely to break if you crash the lathe. In particular, parting on the 6x18 lathe has a tendency to be finicky because of the flexing.
I have had mine for over fifty years and mostly use either 1/4" or 3/8" brazed carbide. I also use HSS tool bits from 1/8" to 3/8"where I need a custom form. I regrind all my tool bits and for the carbide, I use a HF diamond disk mounted on a small motor.