I don't know whether it is right or wrong, but I went ahead and dumped oil on it. It probably spun off the first time I pushed start.
On the same subject, I read some of the other threads about the difficulties that some people were having putting the top nut on the starter. For my starter the bolt is reversed with the nut on the front side (engine side) and I had no difficulty putting the starter back on. I could put my finger behind the bolt and hold it in place while I hung the starter from it and started the nut. It was then possible to fit a 14 mm wrench in the gap to hold the bolt while I tightened the nut. It might be difficult to get the bolt in backwards if it not already that way. However,once you get it backwards, if you are careful to not knock it out when removing the starter, it makes the reinstall easier.