Bob –
I have a couple of the Mesa 5i25 cards; the latest build (for my mill) uses a spindle sensor tied to the encoder inputs. (you have a Mesa card, if you have PathPilot)
Does the duality lathe have a spindle rotational sensor? Is it actually tied into something in the machine?
If I remember correctly, there is only ONE encoder input (quadrature, high speed capable – read by a FPGA) in the Mesa cards.
MachineKit/LinuxCNC is very adaptable, so the answer is "yes", but as the other JohnS mentions, you'll need someone who knows how to modify LinuxCNC/MachineKit lower layers.
I do not run PathPilot myself, but am tempted to get it running on my Mills and lathe.