I was in the same boat as you were 3 1/2 yrs. ago. I needed a outlet and also something to do when I retire next year. My first suggestion is to find a woodcraft store or turning club and join. I wish I would have had that but the closest I had was 3 hr drive one way. There are a number of DVD's, video's, books, etc. out there that will help with the learning process. That is how I learned. I watched and then did what I watched until I had it down. Took me about a year. Like I said with a turning club or classes at woodcraft would have cut the learning time down by half. As far as a lathe the one you showed I would not even look twice at it. My friend got one and after taking it back and exchanging it 3 times he finally got his money back and bought a Rikon. My suggestion and all these are pretty good lathes to start with are Jet mini, Delta LA 200, Rikon, Steel City and Penn State Industries Turncrafter Pro. I have the Rikon and love it for a midi lathe because of the 4 it has a 12" swing so you can also do bowls if you so choose. Penn State Industries has a decent set of turning tools that are around $60 for the set. I bought one and still use most all of them even though I have purchased several high dollar tools. Of course you will need a sharpening jig to sharpen your tools, a chuck if you want to do bowls and pen turning supplies to turn pens.
No you are not nuts. Seriously turning I have found is a excellent outlet and besides when you sell a few pens, bowls, etc. it can keep feeding the habit. Also I make about 90% of our christmas gifts turning so it is a good thing. Hope this will give you some idea's to think about and I know other will be on here to give you more idea's.
Retirement: That’s when you return from work one day
and say, “Hi, Honey, I’m home – forever.”
To succeed in life, you need three things: a wishbone, a backbone and a funnybone.