Ok this is not ideal but have a look at the first few frames of this video - it show how the tool should be shaped

http://www.youtube.com/watch?v=ieZ0OMa39Ok

The tool should be razor sharp, just like a wood cutting tool ( i.e sharp enough to draw blood when you catch the back of your hand on it while checking the bore ;))

BTW these little lathes will benefit greatly from being bolted down (and shimmed to be square) to something heavy and rigid (2" of heavy plywood -layered would be good)

Found these good tool bit sharpening videos while looking for a boring bar sharpen video:

http://www.youtube.com/watch?v=hrDr4rYLiAk
http://www.youtube.com/profile?user=...26/dRyqIm5JR5s
http://www.youtube.com/profile?user=...24/HTQ46NMMc88