Yankee:
I would strongly suggest checking out http://www.cnczone.com/forums/index.php and looking at some of the many build logs that are posted there to get ideas.
Ooooh this is not a good post for me to read. 
I've thought, on occasion, that I wouldn't mind having a Sherline mill. The thought of being able to just use my Porter-Cable, with a precision collet, and build a small milling machine is very tempting. Home Depot parts eh?