I use whatever CLEAN grease is at hand. Diesel is better than nothing, but grease works better than motor oil on engine seals so I stick with that.After the seal is done, I would do the Swedish Dyno Tune on it. I worked for a guy in my late 20s that ran an ACVW shop and he did the SWT on every car that went through the shop. There was a main highway about 250 feet from the shop and the intersection was at the bottom of a big hill. He knew how fast a stock Bug should be going when he pass the 55 mph sign about 1/2 way up and would play with the timing until he found the setting that gave the highest speed at the sign. I started doing it and quite often we found that stock settings were not the best. Not a G-Tech but very repeatable and accurate. Much better than the "ol' Butt-o-Meter".I would find a spot and do the SWT while changing IP timing. I used to carry my timing tools in the car and spend and hour or two making runs at different settings until I had it "dyno-ed" in. Worth the time, to be sure.
I use whatever CLEAN grease is at hand. Diesel is better than nothing, but grease works better than motor oil on engine seals so I stick with that.