I to think the levers on the end of the lathe are for the back gears for slower and more power speeds and feeds. I'm pretty sure it's gears are not oil bath . Use some chainsaw bar oil on them if you don't have the right stuff, it is tacky and stays on the gears. there should be some oil holes or Git cup oilers on the machine. depending on your weather temps use a lighter spindle oil on the lathe , but use way oil on the ways and compound areas . More pictures of sides and top of the lathe will help . And yes your motor can be changed out easily if you can find one close to your hp rating. I would bet a 1 hp motor would work fine for you.