Wow that's a great space upgrade!
I wouldn't have thought noise would be to greater concern and if things are vibrating – well that's not normal in my books, what little use I've had with my Myford has been very very quiet, the motor is the noisiest bit – even parting off 60mm EN16 was smooth and quiet last night, a very satisfying noise came from the sound of metal peeling off the diameter

In terms of keeping things clean, AND atheistically pleasing, tacking a sheet to wall is probably not going to be satisfactory – and now you seem to be facing head heigh issues, would a bench at working height there not mean you'd bump your head and no doubt fling oil up on to the ceiling?
Perhaps you could setup a mini workshop in or on a Tambour (in a full height, on a bench height!)! that way your containing everything in there, with a full height – you've got walls, you've got sides, I would remove the lower shelves and build a wood frame inside and place an old kitchen worktop on it, and mount the lathe to another piece of worktop so you can use the lathe on it, or store the lathe under it to work on other things. Chucks, tools, stock could all be stored in the tambour, and tidied away by simply closing the roller shutter doors!
perhaps the bottom section could contain a piece of vinyl mat or just a roll of folded carpet that can be unrolled and folded out and then just rolled back in where your done.
A nice little CJ18 or CJ18A from Amadeal (they do one with a 100mm 4" spindle plate, very worth while having) would sit nicely in there.
aka the Warco "mini lathe", and "super mini lathe" (same thing slightly different)
SPG Tools "0618" and "0618A" (notice the pattern….)
Chester Hobby Store "Conquest" and "Conquest Super" (the pattern continues)
Arc Euro Trade do some nice machines too and I have experienced there great service, I don't think they do any really cheap machines like this – they are obviously not as well made as some of the more expensive machines, but many enjoy them and are happy.
There was another lathe supplier that I can't remember the name of, they had a simple website and offered a range of lathes – it's completely gone from memory……. similar green and yellow colours like Warco, lathes had numbers for model numbers….. it's gone, I can't blame it on my age, it's been a while since I dug all this info up.
I think when all my research was done I was going to go home with either an SPG 0618A, Amadeal CJ18A, or go bigger with SP2124 550, if I wanted something more long term (this became an option when comparing it's price to a Chester DB7VS which was much smaller and had no power cross feed (for facing) at a similar price – also I think some of them don't have reversible feed directions on the leadscrew which could cause issues if you need a left hand thread?
They're almost all the same, some of them are physically bigger capacity, most notably the larger spindle plate from one of the models sold by Amadeal and SPG, I think someone was selling a mini quick change tool post in the standard package which is nice but relatively easy to instal yourself – unlike upgrading to the larger spindle which is not really economical or quick!
I'm really talking about the real bare entry level models here, they're very cheap and when looked after they do hold there value very well but perhaps things will break from time to time – if you're planning on upgrading in a year or 2/3 these might well be a great little starter machine. Personally not being limited by space I went for a used Myford Super 7 as it came up locally I got very lucky basically – it was cheap (£500) and it was virtually unused and has no real sighs of wear – my god, its heavy – 2 man lift – 2 strong men at that!
It's a lot to consider – I don't envy you at all right now!
Edited By Russ B on 25/09/2014 17:53:12