Greg, look hard at what
@pontiac428 says here. Others have said it, too. If the tip of the tool is not dead on center, it will not cut. I know you said you're a precision kind of guy and got it close by eye but I am going to guess that your tool tip is high and it is rubbing. I say its high because if it was low, it would dig in. If it was on center, it would cut. If it is high, it will rub on the relief angle below the cutting edge and it will not cut; it will leave a bright line on the work but it won't cut.
Parting is not rocket science. You need enough relief angle on a tool to allow the edge to cut. The edge needs to be sharp. The tool needs to be perpendicular to the work, and the tip of the tool must be on center. Do all of this and the tool will cut. Your lathe is more than rigid enough to part a 1/2" piece of steel easily.
Make yourself a good height setting gauge that reflects the true centerline of your spindle and use it. It will save you a lot of grief.