Newbie with Emco Compact 8 /w Mill head

The top slide needs to be milled down for the tool holder cutter to sit below the center line.

I'd remove material from the bottom of your tools or the bottom of the tool holders first!

I have an AXA and I'll occasionally mill down 3/4" shank tools to fit the holders and meet centerline.

The bottoms of the tool holders can also be machined so they sit lower.

I want every ounce of cast iron on my lathe so I'd not wish to mill down the compound.

I'd go to a solid plinth before that.
 
I definitely agree with macardoso. It is not a wise thing to alter the compound to accommodate the tool post. I also agree that I would make a plinth before cutting up the compound. PLEASE reconsider.
 
I must clarify that, I won't mill my compound since I learned my pre-cut HSS tooling dosen't require it.
 
Update with new stuff in pictures like a new 4-jaw chuck but no backplate because I must purchase from a local metal supplier, some 6061 alu, 12L14 steel and tellurium copper round bars ( for my electronic hobby ) and nice set of multifix ( not in picture but can provide on request ) :

I got the much needed parcel of stuff, shame the cut off HSS blade is too tall for my AaT holder :
IMG_20210202_194428.jpg

I sanded my combin india stone with this sandpaper with this glass
IMG_20210202_193950.jpgIMG_20210202_194024.jpg

That's good ?
IMG_20210202_193959.jpg
 
Update Version 2 :

I managed at least deburr my bed with my stone, and the apron can move from near chuck to the far end without getting high rise in resistance, so that's not a fully worn bedways.

My machining attempts :
Well, darn. I messed up twice with my brass. I shall redraw my plans to correctly reflect my missed measurements on my Multifix.
2 photos of my failures,

Left one is caused by using wrong HSS tool with positive rake.
Right one is because I drilled all way like a caveman thinking it will be fine. Well nope, lol.

But at least, I managed to justify the sheer effort to stone my brand new 3/8" HSS tooling just for the brass. And I was hitting some dimensions I wanted with my lathe.

IMG_20210208_001052.jpgIMG_20210208_001441.jpg
 
I recently got a Compact 8 as well, my plan is to remove the compound and make a solid toolpost for it - there are quite a few videos about it on YouTube.
 
I finally managed to make this part work after I broke the 3rd external thread, so I improvised something with diy brass nut and plenty of filing. There's my multifix in all his glory on my Emco Compact 8.

IMG_20210209_001428.jpgIMG_20210209_001439.jpgIMG_20210209_001616.jpg
 
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The sleeve and nut looks great! And you can always mill the compound if you get tired of tooling not fitting later ;) I wouldn't hesitate, it compromises absolutely nothing on that small compound. If maximum rigidity is needed then a solid post is the way to go. Best is if you have them both available.
 
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