Welcome to the forum. You will find a lot of good information here and have already received some. Oiling the headstock parts should only be done with light oils. The Zoom Spout Oiler as Dusty suggested is a good one or you can use 3 in 1 oil or sewing machine oil. The important thing now is to get the motor oil off and worked out of the parts. It is simply to thick of an oil.
Again Dusty recommend the use of Johnson's Paste Wax which I use also but do not limit it to the way tubes. Paste wax not only provides lubrication for moving the headstock and carriage on the way tubes but also provides protection from rust. Use it on other bare metal parts for the same protection too.
You did not say how old your 500 is or more importantly if you received any manuals with the tools. The manuals will answer a lot of the maintenance questions and provide information on the operation of the tools. Some of the older manuals are available here on the forum under the Maintenance and Repair
section for Shopsmith Large Format Drawings, Illustrations and More by Everett Davis
. This will be one of the first three topics. In it you will find a wealth of information on the Shopsmith tools. Some are directly linked there and others are on “My Google Drive
” with documents too large to be directly linked. Everett has become the Shopsmith historian by saving and restoring manuals and other documents. Manuals can be purchased here on the Shopsmith website under Support
and while there check out the online manuals that are available too.
The current bandsaw manual is available at this link here on the Shopsmith website. https://www.shopsmith.com/ownersite/manuals/845539.pdf
Another good reference is the book Power Tool Woodworking for Everyone
. In it is a lot of good information on using the Shopsmith and SPT (bandsaw, Jointer, Jig Saw, etc.) tools. You can check out the current, 4th Edition at this link here on the Shopsmith website. https://www.shopsmith.com/academy/introduction.htm
To answer your last question I live near Portland OR.