Welcome, 10scvol! I just sold one of those lathes for a friend of mine. He started in to pen turning and, unfortunately, lost interest fairly quickly.
The pen lathe will produce pens. I know because I helped this guy turn several. The 1/12 HP motor is a little under powered so you will need to keep your tools sharp at all times and you will need to take shallower cuts than you would with a more powerful lathe.
Your lathe has a Morse Taper #0 mandrel. Only the standard spindle will fit on this lathe without modification. If you decided to make pens which require the Berea Hard Woods "B" mandrel, you will need to have one cut down for you by a machine shop in your area. I got it done for my friend "out-of-hours" for $10 and some liquid refreshments.
In working with your lathe, be sure to mount it. It's light weight, less than 12 pounds, makes it tend to walk and it can turn over. Use the four corner mounting holes.
The tool rest tightening bolt is operated on the back side of the lathe. Do not be tempted to adjust your tool rest position with the lathe turning. That's asking for trouble.
With the preceding information, you should be able to make enough pens to determine whether or not you truly enjoy the craft. If you do, you'll undoubtedly want to move up. Fortunately, these things sell reasonably well on eBay.
Come back to us with questions when you get ready to buy a larger lathe and good luck in your turnings!