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Lubrication (use a 'plastic friendly' lubricant like Labelle http://all-railroads.com/lablubes.htm)
Per AC Gilbert :

Oil the car axles and the Locomotive at the following points: 1. The rear motor bearing wick reached through the rear of the locomotive cab. (Be careful not to get oil in the brush tubes.) 2. Turn the locomotive on its back. Behind the rear axle is a steel cover plate that can be removed by unfastening one screw. This exposes a drive gear which should be lubricated with a  small amount of vaseline (use Labelle teflon grease). 3. Oil the wheel bearings, the side rod bearings and the valve rod linkages. (see figure below)

A small drop of oil is all that is necessary. Apply oil with a toothpick or needle. After oiling run train around the track a few times and then wipe off the rails to remove any oil that might have run down on them. This not only keeps the rails bright and shiny but provides a good electrical contact and prevents the drive wheels from skidding.

Lubrication of smoke unit: These can be reached from the left side of the locomotive and a little oil applied with a toothpick, small applicator or brush.

more on lubricating