What is the strange Box/Machine under College of Winterhold
That is the Atronach Forge. You can use it to create various Atronach related items such as spell books, staves and scrolls by placing materials in the donation box and pulling the lever.
You can also use it to create Daedra Armor and Weapons using a Sigil Stone. You will need 90 conjuration to get this stone.
http://elderscrolls.wikia.com/wiki/Atronach_Forge