Hi Matt
This started off as a Hardinge 'HC' lathe - a weird little production lathe fitted with an eight position tool turret, and no tailstock.
Typically, CNC conversions of these sort of lathes have used the tried and trusted solution whereby a separate toothed drive off the back of the spindle drives the encoder behind the head stock, (a bit like the Accuslide and Omniturn CNC conversions).
I've went down a different path, using the encoder fitted to the rear of the new spindle motor, and driving the spindle with a toothed timing belt at a 1:1 ratio. The encoder on the motor sort of keeps track of the spindle position, allowing synchronisation during threading operations. This is a less than ideal solution, as while the timing belt will prevent large errors, load on the spindle could possibly stretch the load side of the belt and introduce slight errors, and minor variations along the length of the spindle drive belt would cause a periodic error.
Anyway, I've had no problems with this setup using single-point threading, but I wouldn't want to try rigid tapping with it. I certainly wouldn't recommend this as a solution for anyone else! The only reason I did it this was that being a lazy sod at the best of times, when I got the new spindle motor and found it already had an encoder fitted, I believed that it would save me mucking around with a separate encoder, drive, and bracket on the headstock.
Cheers, Steve