1) What type of lathe would you recommend? I need something that I can
still
sue as my skills advanced.
2) Since the Lathe is mostly a toy cost is an issue.
3) Where is a good place to get the "bits" I need? I've heard of people
making their own bits from "Key stock" is this possible? how?
4) If I can find something used what type of price range/s am I looking
at?
5) Is CNC worth the money for 1 of parts (no production here)

I would suggest a 9 x 20 Lathe about a grand and a very good size to learn
on. Well tooled out with DRO doable for about $2,000. Excellent for one
off and learning lathe operation with still enough size for many projects.
Check Enco and Grizzley for pricing. This lathe can also be converted too
CNC at a later date fairly cheaply.

Join yahoo Group 9 x 20 Lathe group resources and information are excellent.
As usual for Chinese it is an assembled kit some work and you can have an
excellent machine!

Ken