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The metal to metal contact at the bottom of the spring could have been painted to keep down the rust. Never again put any sort of lubricant on the top rubber seat, the spring and the seat should not move. So long as the spring and seat don't move, there will be no noise.
Of course, with the rubber coated with silicone, the shock can be moved and will not spring back. This is not good for the seat, but you did it and there is no turning back now. Just don't lube any more parts that are not supposed to slide. And ease up on the electric wrench, they are great for getting stubborn nuts off, but should not be used for putting bolts on.
Klaus
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