The AA/Craftsman 109 is a fairly terrible lathe.
It's suitable only for non-precision work in aluminum, brass, or plastic.
You can cut threads with it (assuming you have the right gears, and if you don't, be prepared to pay a couple hundred bucks for a full set).
The biggest trouble (aside from the lack of rigidity, the weak damage-prone spindle, and the non-standard 0MT tapers) is the lack of dials on the cross slide and compound. Without them, there is no way of knowing how much of a cut you're taking. Yes, you could setup an indicator, but that's a PITA.
Watch my video tour if you want to see the details of this little lathe.
Unless you're making pens, look for something a little more capable.
Atlas 618's can be found for not a lot more money than that and they're worlds better.
Here in the NY Metro area, $300 will buy you a 10" Atlas if you're patient... your mileage in other parts of the country will vary.