robo,

I'm no bike mechanic, but the non-metallic may have been bushing or sleeve of some kind. I really do not know.

The oozing is one of several things, to much lube, the wrong lube or too soft a lube. Further compounding the grease ooze, if I read correctly, is the addition of oil to stop the squeaking. By this time you have over saturated the grease and you are just flushing its remnants out, leaving the tarry residuals of the soap, refered to as "age hardened contaminated" grease which will no longer accept any additional oil.

Sounds like you are on track, hope that there is not too much bearing or sleeve damage to repair.

Without actually seeing it, that's my best armchair quarterback ;>)"