If you found grease in the spindle you need to take the spindle out and clean all the grease of the spindle and the bearing. A plain bearing is disgned to ride on a film of oil. Others will tell you that you need to get specal machine oil but I will not. I have been using plain old SAE 20 for the last 27 years with out a problem. Oil use to be recomended for back gear lub but recently South Bend Lathes started recomending a teflon grease for the backgears (oil still works). Gary P. Hansen
P.S. Add oil if needed everytime you use it and you will be a happy camper.
In memory of Marine Engineer Paul Miller who gave his life for his country 7-19-2010 Helmand Province, Afghanistan. Freedom is not free, it is paid for with blood.