You're the first person to suggest slowing down below normal machining speed to deal with the "crust". I like that idea.Looking at pictures is always a little challenging to be sure, but it looks to me like the tip of your cutting tool has been destroyed. That would be consistent with only cutting some small distance before "rubbing".
When cutting in rusty metal or HRS scale, you want to slow your RPM down quite a bit to get any tool life on that initial cut. Possibly as low as 60-80 FPM. 20 thou depth of cut or more, depending on what your lathe motor will handle. Really you are trying to get down to clean metal all the way around in one cut, but how deep of a cut that takes depends on how well centered and round your stock is. Or just sand/grind the shaft clean first as others have mentioned. Just remember to protect the ways on your lathe so they don't get saturated in abrasive residue.
Random (mystery) metal may also have been hardened (like the printer shaft). That can play havoc with HSS. Learn to use a file as a basic hardness test, a file will easily cut in soft metal, and will skate across hardened metal without biting in. Some feel is involved so don't be afraid to try it on several pieces of steel to get an idea of how to judge.
I have already gone out and emery-paper sanded off the rust this afternoon, so almost all of the bad stuff is now gone and it actually looks like steel. I did the sanding of the first section before I realized I needed to protect the ways...but I've cleaned them and will clean them again. I put a paper towel in place for the rest of the rust removal project.
My first step with this bar was to cut it with a hacksaw. Based on that cut, I'm relatively sure it's not hardened. If it is hardened, it's not very much.
I agree that the bit is not likely to be at its best anymore. I ordered some inserts, but they'll take a couple of weeks. I guess I'll give grinding a try to see if I can clean up the cutting edge. And I might switch over and cut some 12L14 first...it should be here late tomorrow.
Thanks to all!