This is my lathe, a Harbor Freight 12x36. It's a relatively cheap import machine (if you call $2000 cheap), but it's of surprisingly high quality compared to many smaller import machines, and it's very capable. I've made lots of chips with it since I got it in late 2006.
My drill/mill, another cheap import machine. This time, it was about $1000 instead of $2000, and it showed in the machine's quality. The round-column design is not nearly as rigid as a dovetailed-column or knee-mill design, and loses vertical positioning when moved, so any precisely-located operations are limited to the quill travel. I got the machine in late 2007, and have used it quite a bit, but it's neither as pleasant to use nor as capable as my lathe. It makes a wonderful drill press, but lacks the rigidity of a real mill.
Probably my most complex machining, fabrication, and engineering project to date, this is a wood chipper inspired by Steve Bedair's similar project. It has a 3" maximum capacity, a 12" cutter disc, and a 11HP engine. Everything down to the cutter knives was custom-made for the project except the engine. Go here for pictures of the construction.