Hi Neil

Some good suggestions there. Machined surface with fibre makes a lot more sense and I could make something if all else fails. I'll try a bit more PTFE then look into the locktight.
Oil is what Warco recommend for their headstock and cross slide. Have a look in their website as there is only one.

Nick
Pretty sure it is dripping out the plug. The front face where the shafts exit is bone dry. Underneath there were lots of drips gathered around the plug. But I'll double check.

Rob
Strange how your lathe does not have a drain plug. Mine has a similar plug on the upper left side of the carriage to fill the oil and a sight glass on the lower right side. It has power feed and power cross slide.

Thanks all