Grease has too much shear strength for the back gear quill. Puts a heavy load on the drive train. I tried it in '82 trying to follow the 'book' but no good. I've used ISO 68 since and she runs well like that. I use the backgear a lot!
That looks like a bent lead screw moving the carriage around as it travels. Every body laugh now but I'm here to tell you that I've seen that quite a few times in the last 60 years. If you measure the pitch of your stripes it will likely match your lead screw.
If it fell over and bent the levers then one or more of the shafts may be bent. Check those first! Don't make any 'adjustments' until all the parts are correct.
Don't worry about small scratches and dings in that bearing. As long as the shaft is clean and smooth it won't tear up the bearing. That bearing can stand a lot of clearance, say .02-.03", before you need to worry about it.
Pete
It only takes a little bit of 'stuff' between the shims in a stack to make it a thou bigger. If it was dirty when you took it apart, and you cleaned everything, then the stack is now too tight. Adjust as required...
You will need a MT-3 MT-2 sleeve. I think the 9" ers are MT-3 in the spindle and if yours is, then the MT-2 collet w/drawbar will work just fine with parts short enough. Or longer with steady rest. Make an insert for the left end of the spindle with a 13/32 hole to hold the draw bar mostly...
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