Re: What oil do you recommend?
Be sure the two-stroke oil you use is TCW3 which has been specifically formulated to burn more cleanly at the lower operating temperatures that O.B. engines operate at as compared their land-based counterparts such as motorcycles and gas powered lawn equipment.
Another recommendation is to use a fully synthetic TCW3 oil as the fully synthetic oils create much less ash deposits then do conventional oils.
Mercury's QuickSilver brand is a fully synthetic premium quality TCW3 oil and highly recommended by most if not all O.B. manufactures. However, it is my opinion and experience that the QuickSilver oil tends to come with a much higher premium price as compared to other brands of fully synthetic TCW3 oil. Walmart sells a fully synthetic premium quality TCW3 oil under their logo for about half the price.
As long as the oil you decide to run is rated TCW3 as well as being fully synthetic, in my opinion is the two main critical factors when choosing which oil to use. One certainly can't do wrong using the more expensive Mercury QuickSilver, Yamaha's YamaLube or the Johnson/Evinrude two-stroke oils. I believe it's really a matter of cost vs. peace of mind.
Myself...I use the cheaper full syn TCW3 oils to arrive at the warm and fuzzy place inside my head vs. spending twice the money while inevitibly still having to do all the rebuild work myself eventually down the road.