CNCCookbook, which is one of my favorite web sites, has a nice pictorial that shows how to make and use transfer screws.
There are lots of designs floating around for tap holders for lathes. This one uses an old drill chuck and looks easy to make. In addition to ensuring that a tap gets started straight, it can be used to drill holes with very small bits. By gripping the knurled body you can get a feel for how the drill bit is doing and control the torque so you don’t break it.
Here is a short pictorial about how this machinist/craftsman makes high quality artist pens and pencils out of stainless steel rods salvaged from a copier.
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