Hi Andrew, Check out the Vintage Machinery website and OWWM.org. Your lathe is on page 24 of the 1936 catalog :
http://www.vintagemachinery.org/pubs/detail.aspx?id=2956
The 101 in the model number indicates that it was made for Craftsman by Atlas.
I don't have any experience with your specific lathe, but looking at the catalog and your pictures it will have bronze bearings. There are probably grub screws that hold the pulley to the spindle and collars on the inside that probably also have grub screws. If you loosen all of those, you should be able to slide the spindle out through the right side of the headstock.
If the bronze bearings are in decent shape, (check by trying to move the spindle back and forth to see if there is slop), you can reuse them. If they are worn out, you should be able to find new ones that will fit, or even retrofit ball bearings if you can find some that will fit the outside diameter of the spindle and the inside diameter of the headstock.
Looks like it should clean up nice. Good luck with it.