I went with a Duron Alkyd Paint (I believe it is made by DuPont). It
is formulated to take the wear and tear of machine use and oil. I
used it on my Milling machine when I rebuilt it and it really holds
Another paint to look into from a contact of mine is Magnet Paints, http://www.magnetpaints.com/
4800 series for topcoat and the 300 series primer
You can brush, roll, and spray these paints. I recommend thinning them down with the appropriate solvent and roll/brush them on. Spraying is a pain to clean up using these types of paints. I have had excellent results and they really do hold up to any chemical you throw at them. just make sure you get down to metal or sand the paint to score it. Make sure there is no rust.
I am currently rebuilding my 10" Sheldon EXL Lathe and using the same paint. It's alot of work, but the finished product can't be beat.