Hi Barbara,
You can use the oil on the moving parts but as there was grease on it before it's probably best to replace it.
Something like Vaseline should do. Apply it where it was before, especially on the parts that turn, metal on metal. A thin smear on the cogs that turn with the timing belt should be enough there. The important thing is to get everything running freely.
Also make sure the underside of the carriage is clean and freshly oiled and that when you push in the cam buttons and turn the change knob the appropriate cams move.
Hope you get it patterning soon.
Regards,
sue
April 2012