Interesting project Ross and one I'm interested in pursuing with you if you are interested. However, being honest the Cam will be more complicated whichever design you go with simply because of the nature of the beast of Multi-axis working together. Or should say getting out of each other way.! . . . and that is is just 3+2, it goes to another level when start talking simultaneous 5 axis.!
Thanks Jazz, your input would be amazing. I keep changing my mind (shocker !) but I think I only need a 3+2 and I've kind of accepted that I will have to hand stitch the g-code and a do dry runs to check clearances.

I've got some rough sketches done for a new lathe with live tooling, but I need to get my big mill running first, as I'll need that to machine parts
Yes a lathe with live tooling would be another option, the live tooling would be simpler than a rotating head like the SwissMak.

The biggest issue I still can't make a decision over is the spindle.
I'd like to maintain a reasonable speed, but retain good holding torque for machining.
Oversizing the spindle servo is one option, but it gets expensive, and needs quite a hefty power supply.
Adding a gearbox introduces backlash, unless you have a very large budget for a suitably sized backlash free gearbox.
Or you add a second motor you can engage/disengage, which adds it's own set of problems.
Glad its not just me then. Switching from high speed to accurate indexing is a problem and also I would like some sort of auto collet chuck (5C maybe)
I've seen people use brakes to help with the holding when a lower power servo motor is used so that could be an option.

So far I have a Myford ML10 bed as the lathe base and a Centec 3b column for the milling base. Click image for larger version. 

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What's the best way to move this forward? create a spec list and work through it?