Thanks for all the info. I need to get some oil and grease. I thought i had to oil it all the time. Motor kote is a product that soaks into metal and reduces friction. I guess i may have messed up the brakes as they did not hold the tension on the spool. Thanks again.
You probably didn't have to toss the other reel. But, there are parts that get grease and parts that get oil. Less is more when applying it. For a general rule of thumb... bearings get oil and gears get grease. Reels use a light viscosity oil that allows for a smooth operation, I do not know Motorkote oil, but if it has the word motor in it, i would be afraid. Quantum Hot Sauce is a big favorite of many but there are a vast amount of lubiricants to be used. One drop is usually enough on bearings.
You would probably benefit by sending a reel off to a reel repair specialist even a new reel can come over lubricated from the factory. But, your new Diawa should work great as it is.
Keep the reel off the ground and store it in a shady dust free environment when possible. Get your brake and tension settings correct. Keep it clean and don't throw it around and it should last a long while. Most guys service their reels about once each season...either before or after the main fishing season. Other guys do it routinely. It will keep the reel in much better mechanical condition if you do this.
As for your line twist on spinning reels, when spooling your line, place the line in a bowl of hot water (not boiling hot, just bath water hot) while you spool your line on the reel. When your done, take the line and walk out the entire distance in your yard. When reeling back in have someone pinch the line at the end of your rod with their fingers or between a wash rag...this will let any twist in the line go out the end and freely spin off.