Nice score. A drop of 3-in-one oil is probably all you need for that motor. Water pumps on my boiler used to have those "zerks" and they hadn't been oiled in generations. It probably just has friction bearings instead of sealed ball bearings but that's fine for this application because with a belt drive there isn't much lateral vibration or force on the shaft. BTW Craftsman power tools double the horsepower by putting the "peak" figure prominently on the front of the tool for some reason. A belt-driven drill press really doesn't need much power so it's probably has plenty of guts no matter what the proper rating is. I'd recommend that you make yourself an auxiliary table with a bigger, smoother (maybe melamine or laminate covered), flat surface area and square edges that allow you to use a self-clamping straight edge as a fence, with slots for a vise-grip type hold-down clamp. I don't have the patience to keep replacing sacrificial inserts so a hole in the center works fine for me. the bigger table is also more convenient for using F-clamps since the edges are a consistent thickness (trying to clamp to the underside of a cast iron drill press table is tricky since there are all those ridges underneath).