This is the AC motor I have, similar to the one in the link bellow.

http://www.brookcrompton.com/upload/...E_W_CI_IE2.pdf

Brook Crompton
kW: 2.2
V: 380-415
A: 5.0-4.8
RPM: 1415
Phase: 3

I shall use it for the lathe operations.

Is there a good VFD you would recommend, or should I just go for a reasonable one over the e-bay?

I will have to also design a lathe spindle encoder similar to the one in the link bellow, is that right?

http://ve7it.cowlug.org/spindle-encoder.html

Cheers!