there is a wealth of information somewhere.when i think of it i will let you know...
do a search on how to run a lathe,it has great examples for setting up,grinding your tooling and feed and speed charts.
i found era correct info when i was searching info for my 1947 southbend lathe.
its relevant to today as well.
also youtube has some awesome tutorials,search Tubalcain or Mrpete222
he's a school shop teacher,and very knowledgeable.
check out mikesworkshop.weebly.com
anything under home shop machining
and model engine building (minature diesels)
i dont have a lot of advice to offer,but a 1/16" wall bushing may be a challenge,but you could find an oilite bushing in the dimension you need.
it should hold up ok,after the stuff i have seen people use to bush worn clutches/shafts.