Emco Compact 5 Conversion

[m_c]

It's best to start with considering the mechanics.
Do you want to run the standard screws, or convert to ball screws?
Then you need to think about mounting the motors, and if you'll need to gear the motors, which you usually do through pulleys and toothed belts.

Homing on the X-axis is highly recommended so you don't need to manually set the tool offsets at each power on/problem recovery, however on a lathe homing the Z isn't as critical, as you'll usually be working at an offset anyway.

Spindle encoder connection will vary depending on what software you're planning on using to drive the lathe.

Don't touch the TB6560 boards, unless you really like to spend time pulling hair out, and fixing them. Some people do manage to get them working ok for their needs, and don't seem to have any issues, but there are plenty who do. It's far better to spend the extra to start with, and go for individual drives, and breakout board/controller.