We didn't use lube on my impeller install, the guy who helped me do mine used dishwashing liquid. It provides plenty if lubrication, and it washes right out.
Even a 50:1 gas-oil ratio will produce a lot of smoke. Is your's oil injected or pre mix? A plugged tell tale cause it to stall...I don't know...it's a monitor telling you the pump is working. Maybe one of the other guys knows for sure. That one sounds pretty good but don't rev it too high on muffs. Good luck.
Here's what I mean about the tell tail not running.... An older video showing no water coming out.... I know I'm itching to try the motor out on the water now....