Lathe Speed & Tearout

I'm experiencing tearout, what should I do?

Usually when tearout is experienced it has to do with speed more than anything. You did not say what size your work piece  is other then it's small so I will assume it's 1 inch for the purpose of this discussion. That being the case the spindle speed for roughing should be at least 2000 RPM and quickly increase when the block is a cylinder. Finishing should normally as fast as your lathe will go. Technically speaking the finishing speed should be 9000 rpm but wood lathes don't go that fast.

Here's a good article on lathe speed. - http://www.hillcountryturners.org/Projects/Lathe_Speed.pdf

When using the Simple Shear Cutting Finisher if you're experiencing tearout the tool should be rotated about its axis (like twisting a motorcycle throttle) until it's making a shearing cut. Usually that rotation is around 35° but varies depending on the wood being turned.

So again my suggestion would be increased spindle speed and rotate the tool about its axis more and I bet you'll find much better results.