ok, thanks Rich. I just cannot get LT to work for me, and I dont have a lot of time to try to figure it out. I have decided to jump into the deep end of the pool and I have gone out and purchased a copy of Dolphin's Lathe software, and they also gave me deal on the Pro Mill package which I can use down the road.
At any rate, the tool issue still needs to be resolved in LT as it is impossible to generate a proper round cutter. the only issue seems to be that the nose radius is copying the I.C. of the insert shape, whereas it only needs to take half that value and things should be good. They way it is now, I imagine that any generated code will be out of position by the tool radius.
Right now I have a hybrid setup, using my cnc router to do profiling with a mini wood lathe strapped to the end of the router bed to hold and spin the material, so I am now using a manual mini wood lathe as a cnc lathe, but I dont have proper software for it. I am using Aspire to generate code as if I were milling a pocket, which creates its own set of problems, then I have to edit the code to strip out the Z tool paths, and then do some more editing to compensate for the missing Z pathways so the cutter doesnt pass through the middle of my spindle..... lots of work, especially when i need to make changes, I have to start all over....

The Dolphin software is cool since both the Pro Mill and the Lathe package will accept an IGES file directly from Solidworks, so that saves a lot of time for me especially with my hybrid since I wont have to run the image file through Draftsight to clean up the dxf file, and then through Aspire, I should be able to go direct to Dolphin and generate the proper code..... that alone can save me 4 or 5 hours of editing for a single project. I am really looking forward to trying it out.