Hi Prometheus
Couple of additional explanations, that I should have done in my first
response.
Jelled Murphy Oil soap, that's correct.

The pins in the tool rest are slip fit loose, since you use two tools
at the time mostly and the angle you might be using them, the opening
between the pins might be to narrow, in that case you just pull one out
and move it over, 2 pins could do, 3 is better and I have 5 in there.

I drilled the holes so deep that the drill bit started to bite through,
the pins don't fall through and the hole stays clean mostly.

Also the forming tools, I shaped them hot and smoothed them out, heat
treated then polished, I have made a couple of turning tool handles
from mild steel, and drilled through for 16mm/5/8" on one end and 3/8"
on the other end, use them for turning wood tools and change to the
spinning tools when needed, I am able to make different tools and not
have to make new handles for every (new and better???) other tool I
come up with.

This covers it I think, if not just give a holler.

http://homepage.mac.com/l.vanderloo/PhotoAlbum27.html

Have fun and take care
Leo Van Der Loo