I scored a used Sheldon 11" lathe on craigslist for $400! The deals are out there you just have to be diligent. I'm looking for a good milling machine next. Lathes are the best. One of the greatest features of a lathes it's ability to make threads, internal, external, single, double, quadruple start! What have I done with my lathe? I turned my D70 hubs down to accept a disc brake rotor. I use it to ream tapers for tre's/dle's. Checked for bent axleshafts. I made a tool for removing the carrier bearings on D60 and D70 differentials, tool costs $350 to buy. That's just the stuff I've done chevy-wise. I have used it endlessly as an amature gunsmith. Need a punch? make one. Need to thread the ends of your drag link 7/8-18, do it on the lathe. What about the other side with the left hand thread? Do that on the lathe as well. Make large diameter things into small diameter things. Every time my lathe has gotten me over that "brick wall" we all hit during a project, I am grateful. If I could have just a lathe or milling machine, I'll take the lathe, as it can be set up to do limited milling operations. As you can tell I love my lathe. If yer looking to setup your shop with a lathe, do lots of research on what features you want. A quick change gear box is extremely handy, though not necessary. Get one with as big a swing as you need. My 11" swing won't hold a 8-lug D44 rotor. If you are buying a lathe, the more tooling that comes with it, the better. I spent $400 on my lathe, and about another $1200 on tooling over the years, and I still don't have all the tooling I would like.
In addition to the sites dksac2 posted, there are:
http://bbs.homeshopmachinist.net/ubbs/Ultimate.cgi
this site is one of my favorites, I find the guys more helpful than the practical machinist site.
If you are looking to buy tooling try Enco, I think they are affiliated with MSC, they have all the same type of stuff. If you go to their site
www.use-enco.com and sign up for the monthly flyer. They give free UPS shipping on orders of $50 or more. Very nice when you purchase a 30 pound chuck.
If you are in the market for a lathe, the new Grizzly's are good, but they're still made in taiwan, and the fit and finish reflects the price, but there are a lot of basement engineers turning out excellent work on these machines. Best bet are estate sales, and craigslist. Like I said, my Sheldon was a STEAL at $400. Good names of older american iron are:
South Bend (their 9 and 10 inch lathes are the most popular/available)
Atlas/Craftsman (Atlas made lathes for Craftsman for a while)
Sheldon/Cincinatti
Logan
Myford(these are English lathes, but still very good)
Hardinge
Monarch
Cincinatti
LeBlonde
The monarch lathes are HEAVY!, some of the BEST machines out there.
When I bought my lathe, I really didn't know what I was looking for, I happened to get very lucky with what I got. Some nice features to look for are:
Quick change gearbox for threadcutting (makes swithching from one thread pitch to the next as easy as moving a few levers, instead of disassembling the gear train and changing gears yourself)
Roller bearings in the spindle, better than the oil impregnated bronze ones
Biggest 'hole through spindle" you can find. 1 1/2" is pretty good
Reversing motor controls
Back gear, this is like low range for your lathe, for HEAVY cuts, or when you need the spindle speed as low as possible for threading to a shoulder.
Quick change tool post
Keep in mind I am an amature machinist, in no way do I consider myself fit to stand in the shadow of a real manual machinist, but I am big on lathes, and can answer almost any manual lathe question you have.