RE: what type of lubricant do you use
WD40 did jack to keep my old 460ci V8 from rusting. I liberally coated the exposed cylinder bores and crank journals, within a week they rusted anyway. WD40 makes a handy flamethrower, starting fluid for gasoline engines and a way to loosen rusty bolts, nothing more.
As for lube, I use Dexron III ATF and/or light machine oil.