[promocom]

Well I took it apart again but didn't see anything obvious, but under magnification i noticed the shaft that the balls roll against was rough and the brass parts the balls fit in were sharp edged and uneven. Using a file and drill motor i filed the surfaces smooth and reassembled it with just oil and it works great now. Now I know it works i'll put some grease back in.
It had a groove on the inside race like MrFixr55 mentioned, but my theory is it was made from the balls and no lube rather than by design.