I'm late after the battle, but I agree with everyone
This is not rigid enough for any serious job, and the motor lack the torque at low speed, which is mandatory. 20000 rpm is useless really. This is for grinding or drilling with sub-miniature carbide drills. Not for turning PVC or UHMW
The old Unimat lathes were very different animals, much better and still in use (and loved) today by many modelers.
Taig and Sherline are the alternative for small work.
http://www.sherline.com/
http://www.taigtools.com/
The problem with Taig was the lack of tooling attachments, but recently retailers offer more and more adapters to use Sherline line on them, which is the best really on the market. I would go for Taig if I had to machine steel more often because the machine is more rigid, but for aluminum brass and plastic I never regretted my choice for Sherline.
Now, in Europe there's also Proxxon, which make I think very nice machines. They will not be less expensive, but maybe more adapted to the metric tooling that can be found there.
http://www.proxxontools.com/
http://www.proxxon.com/us/html/34104.html
It is certainly cheapest to buy an old lathe + milling attachment, but for that you need the space. You would have a larger better more rigid machine for the same price as a miniature one, but you need a garage or workshop to keep it. With a machine like the Taig or Sherline, and in a certain measure Proxxon, you can put that in a closet when you're done.