First lesson, Grasshopper: Take that chuck key out of the chuck NOW! I know the lathe isn't plugged in (which is funny right there) but don't start out with bad habits. The key should never be in the chuck unless your hand is on it, ask me how I know.
That being said, nice find. What did you pay for that little guy? Should be a fun toy for the garage and will be useful for making small bushings/washers/shims and even some linkage parts, but don't expect to do any real work on it. (Which is fine, as these lathes were always meant for the hobbyist anyway.)
Buy a book or two, scour the web for "machinist's" sites (
http://www.homeshopmachinist.net/home would be a good place to start) and respect the machine.
Have fun.