I have the same basic lathe in the Taig series. I bought mine from LeeValley.
http://www.leevalley.com:80/wood/page.aspx?page=50260&category=&ccurrency=2&sid=
The $299 is without a motor; you will have to get the starter set @ $432 to get the motor, or purchase it separately. Also, it comes set up more for metalworking than pen turning. If you think you will use those, then that will be handy - but they will not be handy for pen turning. The Kit leaves a lot out for good pen turning. I bought the dual post tool rest that PSI does not offer. The single post is just not long enough in my opinion. I also bought an extra mandrel. The cross slide and cutters just do not do a good job on wood pens - unless you already have a good background in metal work and wood turning before hand.
AS to turning pens, it does a very good job. For pens, I can do just about anything as well on the Taig as I do with my Rikon 12 in. It was my first lathe and I purchased it because I could bring it back to Japan with me in my suitcase. Lathes are hard to find here and VERY expensive comparative to US lathes of same quality. I purchased a motor here in Japan.
I still use my Taig on occasion when I am trying to make a series of pens. Is it worth it? Depends on your needs. It is more expensive to get started with than buying a Jet VS, but if room is limited or special conditions exist, it does a great job. If you want to experiment with metal work on a small scale, this will be a bonus.
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