The mini lathes are easily accurate to .001". There many machinists who use them, including myself. Go to this website for a detailed description of the Seig mini lathe. It is the same one sold by Grizzly, Harbor Freight and other suppliers.
mini-lathe Features
I made these two engines with one. One is steam powered the other is internal combustion.
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Troutsqueezer, I am assuming that the first image is the internal combustion engine. That looks like a glow plug, or whatever they call it, from an RC engine, I am curious what is the action that causes ignition? Is it a spark or more like a diesel ignition with compression and heat? I bought a little RC airplane engine and saw that same sort of plug, but since that is all I have, it is not very obvious how that igniter actually works, I didn't want to buy an entire plane just to reverse engineer it to understand it.