Hi Rocket Racer,
Take a good look at the lathe you are about to buy... some lathes will cut from Right to left, some will cut from Left to right.
I suggest a carbide bit once you have learnt how to use the lathe effectively. If you are new at this... do not spend $100 on one just yet. Learn how to use the lathe effectively on old armatures if avaliable, otherwise watch the pros and learn from them, or even get them to use your lathe to demonstrate how to get a good cut on it.
I don't use cutting comm fluid, I do not think it is necessary for the amount of copper removed and the duration which the bit comes in contact with the comm.
I do recommend getting a sharpie pen, and a bunch of friends you can race with and beat!