I think BW's basic question is what's the object on the right hand side of the pic...
The lathe chuck on the left is easily recognizable. On the right side is a high speed grinder attached to the cross slide (or compound, maybe). Lathes are also used to do precision grinding as well as cutting with bits. Useful for many cases where a more precise tolerance or finish is needed and the work piece doesn't lend itself to simple turning/cutting.
Merritt Island, FL
When a person asks you for advice, they don't want advice. They want corroboration.