No that is a stock photo from another site, the first photo with the steel rule is my set up. Also yes I try to do all the work I can on my lathe even milling. I used my four jaw and simply centered it on the hole I wished to drill and then opened it up to 38mm with a boring bar. On my next holders I'll use a 1.25in hole saw to waste it out faster then bore it out to 38mm. Also that clamp arrangement should be super strong as its 38mm dia and an inch tall so it shouldn't be going anywhere. Best of all I had the scrap under the lathe bench and no dovetail cutter to buy.
Janger if you're having troubles with your tool post rotating under load try making a dedicated threaded hold down bar, I threaded a piece of 3/8 bar and welded a plate to the bottom for the anti turn feature. Also extend the hold down bolt well above your tallest turret, that's why I use coupling nuts to get lots of surface area on that screw. You can also try turning the bottom of your current tool holder with a decent recess so it resembles a ring and acts like a shoe, I can get a pic if need be.
Oh and as for blacking you can try flame blacking like they did in the old days, or just keep the parts well oiled.