There's some info here about the mini lathes and mills.
http://www.mini-lathe.com/
For an inexpensive lathe, I prefer the 8 x 12 (or 8 x 14), rather than the 7 x 12. More info here:
http://www.fignoggle.com/machines/8x12lathe/index.htm
He also has info on some of the mills - X2 & X3. For drilling and light milling, they would do nicely.
Do look around locally for used American iron. I got a Wells-Index mill recently for $950. It needs a few hundred in parts and a 3-phase converter, but is in very nice shape for a 1969 machine. However, it is large and weighs about 2,100 pounds.
I also saw a little Craftsman or Atlas lathe the other day, offered for $25.
But with three lathes already, I passed.