I use Marvel Mystery Oil in mine with good results. My 1/4 drive had issues when I got it, but after a thorough cleaning and relube, I haven't had any more problems. The 3/8 drive I got recently has been trouble free so far.
I picked up a media cart that I am using for one of my machinist chests. A couple of knobs from the thrift store and a new lock from Ace Hardware and I was in business.
Here is a link with instructions and pictures. http://www.ctci.org/gilsgarage/ValveGapperInstructions.php
You could check your valve lash with the engine running to get a high level of accuracy.
I am old enough to remember when they were advertised in Hot Rod, Car Craft, etc..
Best of luck with your new lathe. Been through way too much machinery moving and know what a stressful experience it can be...looks like you handled it well. Makes sense to break it down if you are planning a refurb anyway.
I really like Proto tools and have quite a few. The only thing I might add is to use your lube of choice on your new ratchet. All the new Proto ratchets I have had were bone dry when I got them.
I've got a lot of Proto stuff and have not had any problem with the detent ball. I have had a few that were a little tight though. What I did was find a socket that was particularly hard to get off and on and used it to find the high spots where it was pretty much metal to metal. Then I used...