Are you going to be turning bushings from bar stock?
The reason I ask is the spindle bore on that machine is very small, not real conducive to turning bushings in a mild production setting.
The machine itself looks very capable of being converted to cnc, but the next machine looks much more capable of what you say you are wanting to do.
Threading with either under cnc control is possible with spindle index pulse card.
I am converting a lathe to cnc right now (slowly) haha http://www.cnczone.com/forums/bencht...on_why-11.html
And little machine shop is a good source for these lathes.
Good luck and just ask if you need any help
JTCUSTOMS
"It is only when they go wrong that machines remind you how powerful they are."
Clive James