+1 for White Spirit, or kerosene to remove the grease, but then coat the surfaces, lightly with oil.
It is surprising just how quickly things will rust. (i have seen a freshly sand blasted steel item, collect a thin film of rust before my eyes) If your workshop is not well ventilated, and kept reasinably warm, you will suffer condensation. The oil can turn grey overnight as it emulsifies.
If you are not familiar with machine tools, I would advise against stripping the machine. You might do more harm than good; after all it worked perfectly well enough for your father. Being unused should not have misaligned anything.
You say that you are not faniliar with the lathe, so it would be a good idea to buy and read oine or more books on their operation. The books will all differ slightly, but the basic principles are exactly the same.
Since you have a ML7, the classic, “The Amateur’s Lathe” by L H Sparey would be appropriate, if it is still in print, or obtainable.
You might find Ian Bradley’s “The Amateur’s Workshop” a useful companion. Ditto if still in print. (It tells some things that are not in Sparey. He also wrote “Metalwork and Machining Hints and Tips” WPS 24)
Other good authors for general lathework are Stan Bray “Basic Lathework” (WPS 45)or Harold Hall “Lathework – A complete Course”(WPS 34)
Before too long, you may find “Tool and Cutter Sharpening” (WPS 38) by Harold Hall useful.
WPS is the Workshop Practice Series of books (You can get these from places such as Arc EuroTrade, Camden Steam Services.
FWIW, my advice would be to stick with High Speed Steel tooling. The ML7 was not built for the speeds and feeds for Carbide tooling. For this, you will need to learn how to grind the tools.
The angles do not have to be too precise; a degree or two either way is unlikely to cause problems. Where possible, err on the side of the lower figures. Removing too much metal will slightly weaken the tool, and more importantly, lt reduces the area capable of conducting away the heat caused by the cutting action.
One other thing, a self centering 3 jaw chuck is unlikely to hold work absolutely concentric.
If work has to be absolutely concentric, you will need to use a 4 jaw independent chuck, and use a DTI on a magnetic base, to reduce the eccentricity to an acceptable level. Alternatively, if needed, the 4 jaw can be the means of producing eccentrics, when needed.
If you do not already have a set, Zeus Charts will be very useful. I still use mine from 1958!
If you can, find a local Model Engineering club, and join. There you will find folk who can advise / demonstrate, face to face.
HTH
Howard