Al,
Just a note in regards to the "lubrication" of the wire. The felt pads you mention are also designed for use with a product called "LUBE" (there are probably others as well) I am not sure of the contents and will have to wait until monday to verify, but I think it is more an alcohol based product than oil, that cleans the wire more than actually lubricates it. You soak the felt pad with it.
As you mention, this is not something that should be done with a quart of motor oil or grease. LOL
I really do not prefer to use them, but I have been in a couple of situations where they were a benifit. We had a small portion of wire that had some dust on it. The wire was still good, no rust, just dirty. Also with long leads it helps with proper wire feed. Under average conditions, I usually did not use them.
jrw159
EDIT: Sorry it is Weld-Aid Lube Matic that I was thinking about.
http://www.weldfabulous.com/Mig-Welding-Consumables/Miscellaneous/Weld-Aid-007040-Wire-p6121677.html