Bought the Harbor Freight Mini Wood Lathe (8 inch swing, 12 inch bed) variable speed lathe (1/5th HP motor, I think) ... got it new while it was on Mother's Day Weekend sale this past year, and scored a 25% off coupon for it to boot. Paid $109 after taxes.
While yes, it's quite underpowered for making larger bowls (I have trouble with 6-inch items), I've had no real issues making pens at all. My tailstock doesn't want to stay in position, sometimes, but that's just because my dust collection needs an upgrade. Debris keeps getting under the tailstock and letting it slide on me. As soon as I upgrade my dust collection, these problems will be a thing of the past, for my pen making projects.
I'm quite happy with my purchase. The motor speed control operates fairly smoothly, and it runs from 750 - 3200 rpms. The headstock and spindle line up quite nicely. The tool rest needed a little work (was covered in black enamel, so I grabbed a metal file and made it nice and shiny smooth).
I still need to get a decent 4-jaw chuck, and I need a drill chuck big enough to do 1/2 inch bits .... my 3-jaw lets me get by with rounding my stock before drilling on the lathe, but a 4-jaw, particularly with pen blank drilling jaws, would make my work go by a lot faster. My problems with picking a chuck? They all cost MORE THAN MY LATHE. Ok, now I'm sad .... but that's alright. You wanna do more than just make pens, right?
Don't bother with the HFT mini wood lathe if you wanna do more than just pens.... keychains ... bottle stoppers ....
Ok, I can do anything that PSI sells as a kit except those big peppermill thingies.