Welcome to the forum, bmw! There's not much I can add regarding the larger of the small lathes, as I've got a 7x10. I guess it all depends on what you plan or forsee needing to turn with it. I chose my 7x because I was looking for a small lathe, only plan on turning small stuff, and needed something lightweight enough to move by myself. The 7x fit all these requirements nicely. If you don't have the aforementioned constraints, a slightly larger lathe will serve you well. A Harbor Freight 8x12 lathe in terms of capacity isn't much larger than a 7x, but it's worlds better because it outweighs the 7x lathe by a factor of 3:1, and that extra bulk always means a more solid and capable machine.
<a href="http://www.cnczone.com/forums/mini-lathe/82871-7-x-10-project-started.html" target="_blank">7X10 Lathe conversion</a>
<a href="http://www.cnczone.com/forums/open-source-cnc-machine-designs/335846-cnc.html" target="_blank">Custom X-Carve router</a>
<a href="http://www.linkedin.com/in/tooldesign" target="_blank">LinkedIn</a>