I use a crosshair laser when I do my "Geometry of Woodturning" demonstration to use as a two reference lines (horizontal and vertical through the main rotation axis) so that when I talk about tool position the audience (and camera) can see the center-line of the lathe, and more importantly, the position of the tool rest and cutting edge of the tool relative to the piece's diameter and rotation. I think it's an effective teaching tool.
You can build one fairly inexpensively by searching for 'laser diode cross lines' on eBay. I bought a few for about $ 6.00 each (shipping extra).
This is the kind of laser diode modules I have:
http://cgi.ebay.com/6-x-650nm-5mW-R...ryZ53141QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
They run on 3V DC from a simple battery pack; I mount the diode in a small piece of brass pipe and run a small wire to a switched battery pack (Radio Shack) that's mounted on the stem of a magnetic indicator base. Once I mount the laser in the indicator base tool holder at the end of the adjustable arm, I can easily attach the magnetic base to the bed of the lathe or the tailstock mount, and quickly position the laser lines on the work.
John Lucas: You can use the old 'string shadow kerf indicator' with a strong light and taught string above the lathe to imitate the 'shadow cut line' of a sawmill's rip saw or gang rip saw. Would work the same as a laser with a bit less complexity.
The crosshair laser works well for me when demonstrating faceplate technique....
Rob Wallace