If you have the room, I would suggest staying with seperate machines. As a 25 year machinist and a 10 year tool salesman, I know that if your doing a drilled flange, etc. it is a pain in the but to break down and reset up. a small lathe ( I'd recommend around a 14 x 40) and a small mill (even the tabletop style) will keep you alot happier.
Try these guys.
http://www.use-enco.com/
http://www.grizzly.com
http://www.harborfreight.com
Or for a little higher quality try Jet.
http://www.wmhtoolgroup.com/TempJETGeneral/index.html
Most of these machines will hold up to a lot of amateur use.
When you need tools, call me. 