Um, well it's yours Andrew, so you might as well see what can be done with it. You're up for a challenge – at the beginning you said you were prepared to dump the variator and motor.
Next step is to clean it up as Clive said and do a detailed inspection. Apart from obvious damage, missing parts, and serious wear it's not easy to evaluate a lathe just by looking at a pile of bits. I'm sure if you publish photos and ask questions as you go, you'll get a better idea from the forum of how sour your lemon is, or not. Don't give up too quickly because appearances can be deceptive. There are lathes that look like wrecks that work well, and tarted up beauties that are junk. (At least you haven't been conned outright with one of those!)
Much easier to understand the lathe's shortcomings as it's put back together. You can take it step-by-step. Once the headstock is on, it's alignment and bearings can be checked using the bed as a reference. Ditto the tail-stock. Then, spinning the chuck by hand will let you confirm the gearing, lead-screw etc all turn as they should.
Others will know far better than me because I've never done it, but I'd advise taking a steady approach taking lots of notes and photographs as you go. The trick will be spotting a hopeless case before spending too much time and money on it. For example, I wouldn't buy anything until all the parts are together and you're confident it's worth fixing.
I don't know about the Chipmaster, but some lathes need careful re-alignment after they've been taken apart : reassembly may not be quite as simple as tightening a few bolts. In cases like that the forum is a gem, ask a particular question and someone will know the answer. Unfortunately I doubt anybody has the time needed to put together a lathe reassembly guide for you before you start work. If such a thing existed it would be a best-selling book!
Please keep us informed. However it turns out your experience will be valuable and interesting.
ebay is a good way to find second-hand lathes for sale, but it's risky to buy one without inspecting it first. Ideally, you want to see and hear it cutting metal, and be able to measure results. Even if you can inspect it, a beginner may not know what to look for and even experts occasionally get burnt. It's all part of life's rich tapestry…
Dave