I also have an older Craftsman router, and the bits will not come out easily until the collet nut is loosened to the point where the nut will easily turn with just my fingers. After the initial loosening, there is a 2nd point where the nut feels like it breaks loose again. I don't know exactly what that feature is called, or why it's like that, but you have to actually feel the nut break loose with the wrench a 2nd time before the collet will release the bit. I hope this is your problem. I'm not sure you want any lube anywhere around a bit that spins at 20,000 rpm.
Last edited by routafinger; 04-09-2011 at 08:06 AM.