Aaron Kushner wrote:

And to reply to Grant... Yes, I've been getting good and
grinding HSS bits ;-) Is one size more appropriate than an
other? I'm using 3/8" Rex AAA bits that I bought on ebay.
Would smaller (5/16" or 1/4") bits be better for this size
lathe?

I'm sure those bits are fine. They have one real good thing going
for 'em, you've ALREADY PAID FOR THEM! :-)

I use a lot of bits in my shop. I recently needed a 3/16" square bit
and sure nuff there was a new one in my "bit bucket". Bits that fit
your toolholders are sure nice. I'm sure you've noticed that the part
that does the work is pretty small, and once you've done the main
grinding you can touch it up for quite awhile with a hand stone or
one of those DMT diamond matrix stones (those are great). Bigger bits
are of course more rigid so they can be extended just a little more,
and smaller bits grind more quickly because there's less material to
remove. - GWE