On a side note, I'm wondering how much would the cheapest low-volume
high-precision lathing and milling machines cost. Given the largest
part is 10cm x 10cm but steel might be used...

I picked up my lathe at Darbert Machinery in Toronto. It's a Mashstroy
Troyan lathe (Bulgarian) and is metric and english - the parts are all
metric, it will cut both threads etc. It ran about $4,000.00 but
included quick-change milling attachment, vertical slide for milling,
full change gears for threading, plus a full set of collets for the
milling attachment. 4.25" (or, 8.5" if you prefer) swing with 8"
faceplate etc. No gap bed.

On the other hand, I wish I'd got quick change threading, and the
collets are all metric, and of a really off-size. Plan on spending a
whole bunch more on tooling. The milling function is pretty limited,
but certainly works.

Lee Valley in T.O. has the Taig lathe in their store, and Busybee also
has a bunch of larger machines.

If you're making engines, start looking up the properties of
silicon-aluminum. It's the grey stuff many cylinder heads are made
from, as well as pistons, transmission housings etc. and it's supposed
to have excellent casting properties.

Regards,

Matt Turner
Turner Racing Shells Ltd.
www.turnershells.com