What a great project and a fantastic lathe ... I too am building slowly but surely a wee workshop on a very tight budget . I have myself an old 12" x 24" Fortis/clausing 4800 lathe from early 50's and a Centec 2 horizontal mill from the late 40's both machine cost me around £150 . The Centec 2 has had a full restore ,where as the Fortis is on going .
Keep up the great thread and good luck finding a compound (will keep an eye open for you)
Sean