Abstract: A lathe for cutting a spiral strip of veneer from the surface of a log includes motor-driven mechanisms for adjusting the knife blade pitch angle and edge height, and for moving a pressure head relative to the knife to adjust the vertical gap and horizontal gap between the knife edge and the roller bar, and provides sensors for determining the actual positions of movable elements of the lathe, thus enabling computer-controlled adjustment of the movable elements of the lathe during lathe operation. A knife clamp of the lathe includes a plurality of separate clamp segments for pressing against different portions of a knife bar to hold it firmly, resisting deformation and rocking of the knife bar. Fluid-pressure-biased bearings eliminate looseness between relatively movable parts of the lathe, reducing the amount of variation of thickness in veneer produced using the lathe. Veneer thickness is controlled by monitoring cumulative movement of the lathe spindles and the main feed carriage.