John,
Nothing wrong with rebuilding your lathe. You will learn heaps about its operation and gain insight into different methods to machining. However I would reconsider your choice of gib material. Are you sure they are carbon steel? Not cast iron, which has its own inbuilt lubrication, (graphite). What do you perceive is the problem with your gibs? Maybe its adjustment error, Possibly they just need some hand fitting to bring them upto scratch. I dont think I have seen a machine with anything other than CI gibs, and that includes quality industrial machines.
Cheers Phil