The video in the original post didn't link to YouTube where I provided links to details of the dog clutch and the retracting tool holder (links below). Both of these have been on my site for quite a while but based on a discussion of threading on the 7x12 Group I thought it would be helpful to make a video showing how these two work together to eliminate most of the excitement that accompanied my early threading adventures.
The retracting tool holder is a Geo. Thomas design and is quite solid, no chatter from looseness in the holder. Plans are available in his book, "Model Engineer's Workshop Manual".
See:
http://www.gadgetbuilder.com/ToolHolders.html#Retracting
The dog clutch concept is from "Screwcutting in the Lathe" by Cleeve, where I adapted it to my 7x12, mostly building from scrap. Adapting it to a different lathe might need a considerably different approach - e.g. my scheme is much cruder than Cleeve's... but it works.
See:
http://www.gadgetbuilder.com/Dog_Clutch.html
John