If it's a key switch on the dash, like mine, I wouldn't use oil, seems to me it would put all the little particles in suspension and cause it to short worse than it is. Contact cleaner, or ether, with the bike held at an angle so all the little metal shavings from the key sliding in and out, along with all the little dust and crap from over the yrs, could wash over to one side or the other and then be out of the way of the contacts, then the cleaner will evaporate off and leave the little pile of crap in a corner out of the way. Those Yamaha key switches seem to be problematic, several people on the ViragoTech forum have complained about them, both my Viragos and the xs650 I used to have, all had "issues" with the key switch. Several Virago owners have also indicated problems with the starter button as well. Considering your environment, I'd just start taking all the electrical stuff apart and start de-corroding them. A commonly recommended "mod" for all Viragos is to add a second ground wire from the battery to a different place on the frame than the single one on there now.