That lathe is the one I was looking at - it shows up consistently as one of the best beginner lathes - and doesn't destroy the bank - I may also be able to grab the larger harbor frieght lathe for free (I know I know, but can't argue free on a hobby I want to try and may suck at).
Beer taps are really what I'm looking at for starters - I've got 5 taps on my system and would love to make some custom stuff for them. I'm thinking of running up to Klingspor's tomorrow while the wife is at work, I'm far from ready to buy right now as I'm still shopping for the building I'll use as a shop (we need the storage anyway), but it's always nice to be able to see what's available and be able to put hands on things.
I do mostly furniture building (like my avatar), but I do a few turnings a year for gifts at Christmas. I have an older Delta/Rockwell lathe- the heavy cast iron type. My advice on lathe selection is that you need to think about what you want to do with it. If you want to turn pens, then the small midi lathe is just fine. But, if you have any interest in turning bowls, furniture parts, or something larger, you'll probably need to think making an investment in something larger. The heavier and more stable your base is, the fewer problems you'll have with vibrations. Also, depending on which model Harbor Freight lathe you're talking about- it may be more trouble than it is worth. My first lathe was a 48" Harbor Freight lathe that you clamp to a workbench. It sucked and vibrated and was a giant waste of money at any price. But, mine was sheet metal and flimsy, so if yours has a lot of cast iron, it may be OK.
Regarding tools, keep an eye out for people getting rid of boxes of chisels. Sometimes the old ones are the best ones, especially if you have a grinder and belt sander to tune them up for use. I bought a chuck and a bowl gouge from one of the guys on the Canadian forum and he threw in a box of old chisels- some of those are my favorite.
Like the others have mentioned, if you're going to be turning bowls, it will be important to have other tools: Chainsaw, bandsaw (probably 18"), lots of clamps if you are going to want to segmented stuff, belt sander, grinder, and lots of chisels. This can be an expensive hobby if you let it. The main thing is to start with one thing and acquire as you need them and keep your eye out for deals. There's nothing wrong with old tools, as long as they are in good working order. Lots of people pick up this hobby and give up and need to sell their stuff. Estate sales or High School woodshop auctions are a good place to look. If you know what is good and what you need, you can be opportunistic as deals appear.
I'm not a fan of Klingspor, as I am not a fan of their abrasives and think their tools are way overpriced. But I have bought a few things there out of necessity (only woodworking store in my town). If I can plan ahead, I shop online for better prices.
. My dad also did an insane amount of wood working when I was a kid (hence all the extra tools back home) and I feel like me getting into this might would re-energize him as well and again create another thing for us to do together.
