I haven't fooled with Lazycam's lathe module in a long time and frankly it can be a challenge since the tool definitions were never completed.
First thing to do is have a read of the manual for Lazycam which can be found in Members Doc's. See Tutorial #5 for lathe specifics and redraw your drawing per the tutorial. Make darn sure you simulate the code in Mach Turn and pay attention to possible bad XZ moves in the posted code.
Wish ya luck,
RICH