Box,
Verify that the lathe pictured will do what you want. It appears to have had its saddle fit with a turret, and I did not see a tailstock in any of the pictures. Additionally, it appears to not have a lead screw, and is likely a "second operation" lathe. These are more like a "horizontal drill press" than a lathe, and are not going to have the versatility of a regular "engine lathe". Lastly, the spindle appears to have a collet system, and not a chuck. If this is the case, you will be limited to holding small round things, and even then you will need a collet for that specific size range. Not knowing exactly what you are wanting it for, makes guidance difficult, but if you are working on any "Jap bikes", or even general maintenance work,you will want inch and metric threading, in addition to a spindle thru-hole that could accomodate anything too long for the bed. A 1.5" thru-hole is not only attainable in the class of machines you are after, but very handy. Bear in mind though that if you can get by with only "imperial AKA inch" threads, then your price will be nearly 1/3 less.
Regarding the machine pictured: If I am properly understanding the pictures, RUN AWAY! Not to be a kill-joy, but you could not give me that machine! I have 4 lathes, and they range in capacity from 16" X 54" to 36" x 320". (I paid $2500 for the "big one", and it weighs around 20 tons) I think you should be able to find something ready to use, and equipped with tooling for under $1000. For some awesome reading, go lurk on the "Practical machinist" forum. They "tolerate" home hobbyists, so post questions with care. Another great site is "the home shop machinist", as they are home shop only. One of the first thing any of them will recommend is that you get a copy of an old war department book called "How to run a lathe" (I think by Fred Colvin) AND the classic treatise on lathes by the South Bend lathe works called: "How to Run an Engine lathe". Both books are under 120 pages, and well illustrated. Keep on searching, and consider talking to big-time (used) machine tool dealers. Many of them do not want to mess with the little machines, and will sometimes pass these finds along. Keep on searching, as the key is patience. Also, use this link:
http://www.lathes.co.uk/ for some good history, descriptions, and often accurate weights of potential purchases. Best wishes in the hunt!
Fabricator