Hi David, that sounds interesting. I described my tool setting method in a couple of replies on this thread – basically a way of accurately sensing when the tool tip touches the work on a slow probing move (despite the documentation, probing is supported in M3 Turn).
Then I have an "offsets" screen (which I'm modifying as there are a couple of subtleties I have only just discovered) where you mount a tool setter & sensor in the spindle, mount a tool in the toolpost, position the tool close to the setter (<2mm), then click a button to take 3 readings off the diameter, calculate their mean, and populate the appropriate position in the tool table.
On the "manual" screen there's a button to set the Z axis so that the tool touches the end of the work then withdraws 20 mm to get the sensor off; and 2 more buttons to set the tool to touch OD or ID. I find that the tool offsets will get me close enough so that if I home the X axis on startup I can get near enough for most purposes, but for best precision it can be better to get close then touch the tool on the work and dial in the measured diameter and go from there.