I bought the motor 2hp, inverter duty, 1800 rpm from ebay. I think around $100 I had my uncle pick it up and he still has it. Hopefully I'll see him soon so I can get it mounted. I'm sure shipping on a motor is pricey so I jumped on this one that was fairly local.
I haven't researched the VFD yet. I was thinking about one from automation direct but there isnt a GS1 for 2hp with single phase input and the GS2 is $241 http://www.automationdirect.com/adc/..._VAC)/GS2-22P0 I think it has features I don't need so I'll look around for a cheaper one.
Will
Good to see you back working on your lathe!