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A high quality American lathe will likely weigh a ton, I haven't seen too many "mini" American lathes.
Either way, the 7x10 is alright for the cost. I suggest a longer 7x though, the 7x10 only has 8" between centers with a live center (even less with a drill chuck and drill bit like Moh said.) If you're going to spend $600 on the lathe itself I'd go for either the Little machine shop Hi-torque 7x12 (actually has 12" between centers) or the Microlux 7x14.
LittleMachineShop.com - HiTorque 7x12 Mini Lathe
MICROLUX 7x14 MINI LATHE
Either way, the 7x10 is alright for the cost. I suggest a longer 7x though, the 7x10 only has 8" between centers with a live center (even less with a drill chuck and drill bit like Moh said.) If you're going to spend $600 on the lathe itself I'd go for either the Little machine shop Hi-torque 7x12 (actually has 12" between centers) or the Microlux 7x14.
LittleMachineShop.com - HiTorque 7x12 Mini Lathe
MICROLUX 7x14 MINI LATHE