We got it working a little more today.
So this thing was at Eaton Corp and was in service a week before Midwest Railway got it, but it sat outside, covered, for 7 months. Not covered good enough. We decided to drain the main oil reservoir and instead of 4 gallons of oil, we got 10 gallons of water. Flushed it with diesel fuel. Found another reservoir that was also empty, but you couldn't tell from the sight glass being so stained. Filled that.
Once we ran it for a while, and got the diesel pumping, it cleared something up because we were able to use the handle to raise and lower it!
We also found that the leather belt that drives the power feed and rapid traverse for the head was broken. That should be replaced this week.
Lastly, the feed speed selector shaft is seized inside the back gear shaft. Sprayed that down with penetrating oil. If it's not freed up by next week, I'm going to put some heat on it or take that part off and get it freed on the bench.
Thanks to all for the good suggestions.