Initially, it looked like just a rust removal project, but on second glance, that might be a babbitt bearing- there appear to be cap bolts on the outboard bearing. I had a babbitt Atlas, there's nothing wrong with them and they run smooth, but once they wear to the point where they can no longer be adjusted, the lathe is then at the end of its service life because the effort to restore the bearings exceeds its value. If there is still a shim stack under the cap, then there's hope. Hard to say, babbitt heads were pre-war and that one has a resto paint job on it. If it did get that rusty in California's air, then it's a good indicator the lathe has sat for 40 years and the surfaces beneath the rust might be quite healthy despite the appearance. Lots of parts available, but stuff like handwheels go for extra ka-ching on ebay because they break easily. I'm on the fence. Depends on your personal needs, really. I made plenty of good tools and parts on mine, but the guy I bought it from was a retired Boeing engineer who maintained it as a working lathe so it was pretty much turn-key.
