I've been using oil, but not loads and loads of it. Maybe not enough - this is the first time I've done this. Last time I paid to have it done (was only 3 hours extra on top of an already huge bill and the bike was in pieces at the shop, so not much choice!).
I was concerned with slathering the pistons/cylinders with oil, but maybe more concerned than I should have been. By the time I got to putting it together, everything in my garage including me had a nice layer of oil on it, so things went together pretty smooth.
I did slather oil all over the rods and wrist pins and gave the rings a nice coating as well as the piston sides and the bottom end of the cylinders.
I didn't use a ring compressor - didn't have one that fit in the tight space and that could be taken apart to remove. Most are designed to let you push them into the cylinders from above. How on earth does one rebuild a V8 engine anyhow?
I'm looking forward to getting the head back. I just want to ride. I've got a Dyna ignition in the meantime, but will add that on later. I'm replacing the carbs with a fresh set as well, and don't want to change too much all at once. The timing and points/condensers were all done new last spring.