http://www.ebay.co.uk/itm/Draper-WT...Home_Garden_PowerTools_SM&hash=item33775b90c4
I came across this lathe on ebay, would this operate in a similar way to a pillar drill that is converted to be a lathe?
I came across this lathe on ebay, would this operate in a similar way to a pillar drill that is converted to be a lathe?

It's pretty much the same principle, yes. There'll likely be a couple of three step cone pulleys under that cover to vary speed.