The mechanism is under the motorboard, so sanding doesn't affect aesthetics. ...And yes, all parts that should be oiled, should be oiled, and the ones that shouldn't, well, shouldn't. The pivot points on the tone arm, if oiled, should be oiled with a very light body oil. The friction point, of course, should not be lubricated in any way. Sometimes cleaning with alcohol or acetone, depending on the material, helps clean off any oils.