That was what I got. Could be wrong. Maybe the OP can clarify if he's still around. Could have been a drive-by posting. Never know.
With a good lathe and short mill there's just not much can't be done. Question is, is it really worth the setup time and materials?
As for blowing out a 5.56mm to fit a 7.62mm sizing die and run blown-out brass with a small head in an AR platform, sure. You could even solder brass or tinker's silver to the rim to make it "real" 7.62x39mm if you were of a mind to. Question again is, why? Only the user can answer that.