Unimat, Perris, Peatol, Cowells, Simat, Flexispeed, ToyoML210…. All too small and under-powered for what you want. Believe me, when that coin collector commissions a cabinet from you and you have 25 pairs of brass knobs to turn, you'll wish you'd bought something bigger.
I have a Unimat, a Perris and a small Toyo because I like small, intricate things, but the lathe I actually use all the time is a Myford Speed 10. David Clarke is spot on; C3 (Axminster C2) or similar is big enough for what you need but doesn't take up too much room and is just about small enough to store in a cupboard and bring out when you need it (if you have a strong back). Myfords will do fine, but will require their own permanent bench space. An Emco Compact 5 would do the job too; I sold one last year for £450 including tooling. That one lived under my bench. I used to make furniture, and for years used an old Chinese lathe which was sold by Axminster as the BV20. It was crude, heavy, noisy and leaked oil copiously from the gearbox, but was capable of good work in this field. Newer Chinese lathes are much better. Siegs from Arc Euro Trade are well recommended.
Occasional milling can be done perfectly well in the lathe; you'll need a vertical slide for that. There are several books in print which will show you how to do it.
£500 will get you kitted out nicely with a second-hand machine, but don't forget to allow for tooling. I think the rule of thumb round here is to allow the same amount for tooling as you paid for the lathe. Try to find one with tooling included and you will save money over having to buy stuff separately.
Good luck.
Pete
Edited By Peter Hall on 29/04/2012 09:53:50