I wonder if you are missing a tool holder for your tool holder, so to speak. I have seen the lathes at work, and some of them hold the larger size tools, and some the 1/4" size. Machine company have any advice? The lathes at work had the proper size tool holders without any adapter to hold either size for an individual lathe, but I would think there would be some simple conversion tool holder. I will check in the morning to see if I have any of the larger size cutter bits. If so, I can't use them, will send them to you. Are you sure they aren't closer to 3/8" size? The "bits" I have for my lathe are the smaller size, but I think i still have some larger size I picked up at a yard sale that were mixed in with the ones I needed.