Parting (toolsteel?)

My dad has a fairly old magic drill attachment gizmo which has a phillips bit output shaft. I'd like to part off the end of the bit and put a collar on so I can attach a small chuck instead. I imagine a hacksaw would work, but I need practice on the lathe.
I'm a pretty comprehensive newbie with a lathe, but I've done a fair bit of plain steel and aluminum, but this parting job is turning out to be difficult. The problem is I can't seem to cook up an edge that will cut, seemingly regardless of rake and the angle at which I apply the tool. I shifted to the back-gear due to really bad chatter which took the edge off the tool early on.
I suppose the metal I'm trying to part is something extra-hard. At this point, I'm about half-way through and all I'm doing now is polishing the surface I'm trying to cut. Its now quite smooth and shiny...
My guess is I need to do a better job of grinding the parting tool. At present, I'm trying to follow basic tool grinding recommendations in the SB "How to run a lathe" book. If someone could give some hints about how to set up a parting tool for "hard" steel, I'd really appreciate it.
If its relevant, I'm using an Atlas 6" with a fairly ancient half used parting tool.
Thanks,
Greg

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You'd be better off to either find a piece of hex stock or part it with an abrasive wheel. (Most) screwdriver bits are heat treated and don't lend themselves to machining under normal circumstances. It's not you that's the problem, but your expectation. Even we old seasoned machinists would have difficulty parting such an item with a toolbit.
One thing you could do is put the bit in a drill motor and spin it as you hold it against a grinding wheel, taking care to not over heat it. That would yield a pretty nice finished end with a little care.
Good luck!
Harold