Should be some lube on it. Wheel bearing grease works good. I like to stay away from that white lithium crap as it tends to get hard with heat.
If I can recall I had a slip yoke on the driveshaft that had a grease zerk.

 

use tranny fluid or motor oil, the tranny supplies lubrication for the yoke when it's travelin in and out.....the tolerances r so close on a t-5, that i wouldn't want anything near the thickness of grease to be in it.....and whatever u do, do not put gear oil in that tranny, use synthetic dexron....gear oil will kill it.....

 

Just use the same fluid that's in the tranny -- which is supposed to be Mercon (Dexron III). Don't use wheel bearing grease or anything like that on it!

 

and use just enough lube to allow the disc to slide smoothly over the shaft and NO MORE.

 

I just put in a brand new T-5 that came with some type of thick wheel bearing grease on the output splines. It also came with Royal Purple Max ATF to fill it with.

 

We use teflon grease at the dealer