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Tmac,
The ONE WAY lathe is a very expensive woodturning lathe and is far more than one would need to make a pocket watch case. A few of the smaller wood lathes that come to mind are SHOP FOX, RIKON and JET. Check out GRIZZLY TOOLS, HIGHLAND WOODWORKING and WOODCRAFT and see what they have to offer. Also, I believe that metal spinning is popular in those circles for cups, candle holders etc.
As far as the Lorch goes I own a small Geneva style Lorch but I like the Wolf Jahns a lot better. The Lorch has some funky things about it like the spindle adjustment for the cone bearings. Keep in mind that these machines are no longer made and the accessories and repair parts are hard to come by. Also know that your LEVIN is one of the finest machines ever made. There is a book written by Louis and Samuel Levin called PRACTICAL BENCHWORK FOR HOROLOGISTS that you may want to get. I got a copy off of Ebay but you might be able to also find a copy from Amazon.