If you're talking about the T-nut to fit a tool post to the lathe, you can do that with a hacksaw and file. I did so for my Atlas TH42. Took me about 4 hours. Was well worth doing. I could have taken it to school and done it there, but it would have been a 3 or 4 day wait, and I was too impatient for that. You will need a file. You can use a hacksaw to rough it out. If you've got a vise you can clamp it in that will help speed things up. I didn't even have a vise where I could get to it at that time. Sharpie would be handy, and a scribe, too. I did mark it out with a pocket knife. I can describe how I did it in more detail if you want, but it is not that hard to do. I also doubt I could have milled it to be as close a fit. This was several years ago, and my skills have improved since, so wouldn't be as much of a problem. 

The guys who made the old machines did much of the work with files, hacksaws, hammers, and chisels. We're lucky, but making something like this with the old methods gives you an appreciation of how far we've come. Several of the old machine shop books have a section on "Bench Work" that describes the use of hand tools for making machine parts. Some cool stuff there!

Bill in OKC