On the oil/grease question, I like to go light.
I clean it all out with WD40 and then I dry it out a little, and then as I am rebuilding the reel, i touch it with 3in1 oil here and there. I find that the light oils leave the reels more free to move about. It feels better when the reel is moving smooth and has less friction, and that is easily attained my the light oils.
For all of the precision parts of the reel that spin (e.g. bearings, spindle, etc.) I use CorrosionX; it bonds to the metal and reduces friction. For gears, just a little good 'ol Penn muscle grease, enough to quiet any grinding noises and make the reel smooth.