For the reel repair guys. Oil or grease on the levelwind worm gear. I recently read that oil should be used because grease collects dirt and can wear out the pawl prematurely.

Grease inside the reel.

 

Oil outside of reel.

 

Oil on level wind worm gear.

 

Grease attracts dirt and grime which you want to avoid.

That's right. I find that 80w-140 gear oil is a good compromise. it stays put fairly well and doesn't gum up the way grease can in an exposed application like that. 

I have been using ReelX on my worm gear for a few years now and it has worked well.