One for you hobby lathe machinist!

I can't imagine getting rid of my compound. But then again, I just finished a project where I had to cut a lot of tapers (for cone shaped items which can inexplicably no longer be discussed here) and the compound is how I got them done. Also, I think my 13" lathe, while not the epitome of rigid, may be bigger/heavier than what you're working with. I'm jealous of your DRO though. I have one for my lathe, but I'm too lazy and scared to start drilling into the lathe to mount it...
I had to disassemble the X scale before installing my DRO to cut the glass scale and housing to fit the machine because it hit my backsplash. I was surprised when it still functioned.
 
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Notice the quick change tool post puts your tool bit way off to the side on a small lathe. And look how narrow the saddle is. Right off the bat that introduces a twist action to the compound and cross slide dovetails. Causes many problems. That's (one of the main reasons) why I don't use quick change. You want the load to be carried straight down through the compound to the cross slide and into the saddle. Set up that way to eliminate half your problems. I don't care what you hold the bit with but always consider the load path.
 
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