When oiling the ratchet type starters you shouldnt put oil on the bearings, just clean the crankshaft and the square center part (I gently linish the crank) and make sure the ball bearing cavity is dry.
Anyhow, On the motor you have pictured there, that is a newer model engine by the looks of it but has the wrong carby. There isnt a lot to go wrong with that starter and shouldnt be anything in constant contact to cause screeching.
