Good day to you,
First of all WD40 should be ideal for your machine, a nice thin oil and I suspect that could be a cause, stiffness of the machine may not be down to lack of oil though, it could be that you have a fine piece of thread caught in the raceway, this is a common problem and that is all it would take to either stop the machine or slow it down.
As far as the stop motion goes, do you have a stop motion wheel in the middle of the balance wheel ? if you have then undo the small screw and unscrew the stop motion wheel all the way off, you will see a three pronged washer, take it off and put it in a different position, put the stop motion wheel back on and tighten but do not over tighten, enough to feel the wheel getting a bit tight, tighten the small screw back up and see if the stop motion loosens and tightens, any problems let me know, unfortunately I can't get a picture of your machine on screen, if you can e-mail a picture that would be brilliant, e-mail below.
Ken
drivewithken@blueyonder.co.uk, September 2007