Oil in starter?

I've had some recent trouble with starting my XJ650RJ (61K mi.) Does not turn over, starter relay clicks, battery is good. I slightly tightened the cable at the starter and everything was good for a few months.

Friday the trouble returned. My attempt to tighten the cable was frustrated by the post on the starter turning. I disassembled the starter. I found the post is held stationary by the plastic bushing that insulates the post from the starter housing. The interior edges of my plastic bushing were in pieces, letting the post rotate.

I also found the starter brushes were extremely worn, so much so that one brush spring was bottomed out on the housing. I now believe that my initial "tightening" of the cable actually rotated the post, tugged on the very short wire to the brush, and temporarily let the worn brush make contact. So clearly new brushes and a post bushing are needed. (Chacal's HCP4159 looks good)

My current concern is that I also found about 2-3 teaspoons of motor oil in the starter motor. Examining the gear end of the starter, I found that there is no seal around the shaft, only a bearing. Is this oil just a result of 29 years of seepage and sidestand parking? Other than cleaning it out, do I need to do anything about it?

 

Correction on that last...

I seem to see a seal behind the end bearing, trapped by a bushing on the inside. Seems unlikely I can pull the bearing without damage, not sure what seal is needed, neither is listed in Chacal's catalog.

New starters are outrageous $$$, rebuilts not cheap + heavy to ship. Found rebuild kit on Ebay, $28 shipped: bearing, seal, brushes, cable post and plastic bushing. 3-4 days USPS, but it's supposed to rain all week anyway...