You should be able to get a cheaper motor on ebay and an NVR switch.
The shaft can be turned down on the lathe. Bolt the motor on the bed dead true on the lathe axis. Mount a tool bit at centre height or a thou below. Power up the motor and reduce the shaft until the pulley fits. Make sure you are turning parallel by regular measurement.
(Don't worry, I took care of spammers and viruses right from the start of the group)
Excellent motorbuilding articles by Brian Mulder,they cover the all the basics, a must read:
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-> Articles by SouthEasterners.
-> Electric Motors - part 1-5
Do-it-yourself motor homepages, manuals/tutorials, checks and tests in this motor builders tips and tricks thread. The checks and tests may save you from frying your controller or motor. Thread is active, bookmark it for future reference and subscribe to it:
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(sticky thread, at top of that subforum)
The 'bible'
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Two instructive motor winding/assembly videos, 14 & 10Mbyte respectively (cd-rom and lrk have different winding diagrams!)
Presumably this a single phase motor ? Are you stuck for space (motor diameter and length), or is there plenty of room ? Interesting to know why it went, a 3/4 horse should be plenty for a small lathe. Maybe it overheated and the replacement would benefit from extra cooling. Machine Mart list a cheap and cheerful motor that might do the job (3/4horse 19mm) for =A370 ish - but then the same may happen to that.
Or maybe you should take the opportunity to swap to three phase motor and use a phase converter, as modern phase conveter/inverter units allow all sorts of nice soft start, fast stop options, so act as your starter, and at the same time they allow speed control.
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