lathe/mill combo

[El Laton Caliente]

The cost isn't any more of a problem than space. I have a heated & a/c shop that is one bay of a three car garage. It is about 12x24 but has a 30" work bench along one wall and thee 30"x36" floor to ceiling cabnets and two doors, one outside and one into the garage. I already have a frig, hobby mig w/ gas, 12 ton press, floor size drill press, bench drill press, 20K+ ammo, dillion press, two 12 draw Lista cabnets, 30"x72" tool box and more in there.

The wife is saying just buy a bigger a/c and take the whole three car garage... lol, what am I going to do with all the crap in there...

[circuits]

The 13x40 gap bed will have the same footprint as the smithy 1340 you're considering - no gain or loss there, and it can mount to an existing bench in lieu of a steel cabinet/base. The 21" mill/drill will have only a very slightly larger footprint than your current drill press, and can completely replace it for drilling duties if there's no other way to shake loose more space. The mill/drill can also be mounted either to an existing bench, or on a steel cabinet/base.

I also recommend getting 240 wired in and get both the lathe and mill/drill running on it. 3phase would be best, but you can make do with 240 single phase easily. 120 single phase is also an option, sometimes, but big machines draw a lot of amps at the lower voltage.

Here's pics of the relative meat of my 13x40 and mill drill, with my floor standing drill press for relative size comparison:

[hogmister]

that's a nice set up circuits. they don't take up that much room really, and like you said, having the mill eliminates the need for a drill press. the other issue is having to run either 220, 240, or 3 phase service to the shop for the bigger machines. it's about 75 yards from the house and the service line runs underground.
i would probably not live through putting them in the basement. my better half would kick my butt.