I thought perhaps my next comments should be in a new, seperate thread but I will let you guys decide:
Is there any good reason you could not take a variable speed lathe, cut most of the bed off it and use the crosslide, saddle and compound slide to manouvre the position of the cutter – which you could mount in an adjustable toolholder – and mount a grinding wheel to the spindle instead of a chuck?
Would this work as a tool and cutter grinder?
graham.