Sounds like you got lucky Dom. If the machine is in good mechanical condition and has standard NEMA motor mounts then the worst case you are looking at getting a set of servos to go with your gecko's and an old pentium to run the G code controller.
There is a design for a DC motor speed controller in the electronics forums if you have to replace the spindle drive as well.
1.3 deg/step motors? This is probably 1.8į/step - 200 step/rev which are standard two phase steppers. 3V 1.7A motors are probably pretty weeny If you wanted to you could replace the current drivers with a three axis xylotex board for $145, but the machine wouldn't be the fastest.
Coolant is easy enough to control. Does it have a tool changer? What sort tool interface does it have?
Please post pictures as soon as you get it.