Ron,
From my experience 20 - 30 thou (infeed) should be fine on a piece of good steel. I ran into a lot of problems cutting steel when I bought my first (9x20) lathe a few years ago. I had bought some "CRS 1018" steel at a salvage company. I tried for months cutting that stuff - using cutting oil, playing with speeds, feed rates, carbide, HSS but it never gave a good finish. Over time I moved on and finally got some 1144 alloy free machining steel. All I can say is, when using a new lathe, mill or any metal cutting machine for the first time use a good piece of steel to check it out. If you can't get a good finish on it, then start looking at the machine and its various adjustments.
Good luck in chasing this thing down.
Cheers,
Phil