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I'm convinced that the HF extended warranty is an even bigger rip-off then
most of them, at least where the lathes & mills are concerned. If the item
you purchased was less then $500 (not certain, but I assume that is purchase
price, not normal price) then the warranty is good for one -replacement
only-. So if something goes wrong, they will replace the entire unit, one
time only. Considering the hassle with hauling the entire unit in to the
store, and considering that most repairs are likely something that you can
fairly easily do yourself (or pay Uncle Rabid $25 to do for you in the case
of electrical repairs), and considering that most people will end up making
some modifications to their lathe that will at best be lost and at worst
void the warranty, it seems like it's not a very good investment.

I believe you need a tool holder for the parting tool, something like #1551,
though I could be wrong (I've only had my lathe a week, & just got my LMS
"goodie box" in the mail today).

One thing that I can already suggest is that you avoid the carbide bits & go
with HSS. You'll need to buy a grinder (~$30), but you'll get far better
results, especially if you are working with Aluminum. I bought the
equivalent of 2412 from HF when I got my lathe, and the results I got were
lousy. When I was able to locate some lathe blanks from a local tool
supplier & grind my own, I immediately saw a -huge- improvement in the
results from the very first tool I'd ever ground. I'm sure that as my
grinding skills improve, the results will get even better. Not sure that the
results would be as pronounced on steel or not, but they don't work well for
aluminum at all (although, to be fair, I'm sure that someone who had used a
lathe before could get at least a bit better results then I did). If you
need to learn how to grind the bits, the Jose Rodriguez video on the subject
(LMS 2396) is good (though his other videos are even better).

Mike