Dhal , the one thing I would consider would be to put the mill on the left side of the lathe . Many a time came up when I had to support the end of a long shaft with a makeshift set-up to avoid bar whip . Just a consideration . Having the mill located in the corner as shown also limits you on long pieces of material .
If you still have engagement, keep it. If you have room on the face of the head side, turn it back to effectively move the threads downward. If there's no other way, make a new one on the lathe.
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