I've had the arms on and off several times, and yes, they are tightened correctly. Loose balls (and this is the first time I have used loose in the BB). Bearings came from Lickton's (IIRC). Should be grade 25.

I don't feel any tight spots in rotation, but being a bottom bracket, it does not turn as easily as a hub would for instance. I've adjusted loose, tight and in between to see if the clicks go away and they do not. Current adjustment was just until no play was felt (after lock ring tightening).

I tore it apart again and am cleaning everything in mineral spirits, including the caged bearings and the loose balls. I will inspect the cups and races (again) and maybe either polish them with light 0000 steel wool or maybe even use a bit of Simichrome on them?

What is the current thought regarding lubing the crank arm/spindle? I know Campy recommends dry, but that company whose name escapes me (begins with an "S" I think) does recommend grease on the tapers IIRC.