I know how you feel. I got a 128k on Craigslist here in Chattanooga for the same price (just without anything, even a complete set of case screws) and have been slowly rehabilitating it. One fellow who was new to eBay sold me an ImageWriter and then when I got some more dough he had an external floppy drive. The internal floppy drive was properly re-lubricated, as the 128k's previous owner was a Mac museum collector who had to downsize and then the video collapsed.
I found someone who got the video repaired and (back to the floppy drive) after months of guessing I took the properly lubricated internal floppy drive out and observed the mechanism when you insert a disk and then eject it.
Through that examination I was able to determine that the cross bar over the top of the floppy drive (it's there on both my internal and external floppy drive, the external drive was made sooner than the internal drive and they both have it) and the mounting points for the cross bar (which on the right side it has two mounting points) as well as a little circle that is actually the outward facing part of a lever, which in a floppy drive that is stuck ***without a disk in it*** will be separating a protrusion on the eject lever which has a 90 degree angle at the front from an upper portion that limits the floppy disk from going too far into the drive, those are the two parts that need massive (as in several generous but not overly so) applications of white lithium grease to get it so that the little interior lever can move freely.
In order to get it to that point, you use WD-40 to dissolve the dead grease enough to wipe it off. And sadly you will most likely have to take the top (the insert/eject mechanism) off using 4 small annoying to reinsert screws so that the interior of the insert/eject mechanism can be lubricated, although the inside only needs about half the amount of the outside on the right side.
It also helps tremendously if you move the circle that is the outward facing part out of the lever up and down along it's range of motion until you're about to go insane. That distributes the lubricant all throughout the mechanism in a way that just rubbing it on the outside won't successfully do. At first, you may have to move the rear part of the disk holding mechanism backwards so that you can see how the little metal circle is supposed to move.
Low End Mac has directions that when I finally understood them, they helped me, and my directions are based on a layperson's understanding of those directions.
When it has been lubricated to satisfaction, what it will do is go "CLICK!" when you just lightly push the disk in and push it out with the greatest of ease all in one fluid motion. Just before you get to that point, you will notice a slight (like 5 second) delay between pressing the eject mechanism and the little circle moving back into position and thusly the disk ejecting. Give it one more generous application of white lithium grease after that and it will work.
I recommend the Liquid Wrench brand of white lithium grease, most local AutoZone stores should have it, as it's supposedly nationally carried by them.
You may need to use about a quarter of a can of WD-40 and a half of a can of white lithium grease, depending on the exact number of years it's (the drive) gone without regular use. Just make sure to rub the white lithium grease in so that it's not sopping. That's what I meant by overgenerous. Sopping with grease will block certain sensors and cause the heads to crash.
The whole right side needs some lubrication, but do like a 1.25 to 1 ratio of grease for the parts specified. Then you should have a mint condition floppy drive both inside and out, and we'll both be ready for the 30th anniversary of my Macintosh 128k-since it's a post 512k model, it uses a logic board similar to that of the 512k instead of the unique board it used earlier.
Kindest wishes sincerely most.
