Julian,
As Jason says in that size a steel boiler is the only way to go. Andrew must have been waiting for me to pop up!
Depends on your outlook but I don't think the costs are as scary as Jeff portrays. My 6" has cost me North of £10k, couldn't tell you exactly as I have stopped counting. Castings were about 15%, boiler 20 – 25%, rubber tyres 10% all of which were incurred in the first couple of years (been on it nearly 5 now) the rest sundry materials, fastness, cutters etc. I have done a lot of the smaller parts on a hobbymat, myford and mini mill and there are a lot of small bits but there are also some big hits, I am fortunate to also have an Elliot Omnimill and a Harrison L6 as well as access to a Bridgeport, Kearns horizontal borer, large radial arm drill, Holbrook, Edgewick, large Harrison and other assorted machines. The crank shaft, wheels, diff and flywheel were all done by me on large machines as was the cylinder block on the HBM and my Omnimill. I also cut my own gears on the Omnimill. So there haven't been any sub contract machining costs, with only the Boxford you will struggle unless you have access to some bigger kit, even for a 4 1/2" engine. With some creative set ups you will manage some of the bits but not all of them and if you have to pay someone to do them, that could cost as much as the boiler! Also consider the space you need, when mine is a pile of bits there is a lot of them. Don't be put off but certainly if you are going to buy a mill buy a big one! Finally be prepared for the time requirement, mine has absorbed most Saturday's for five years and a fair few evenings and other odd days and I am not finished yet! It is no short term or quick undertaking. However with enthusiasm and tenacity it is eminently do-able and very satisfying. Do remember though that most drawings contain errors so if you are contracting stuff out, make sure you check all the dimensions carefully before placing the job!
Other than that, go for it!
Paul.