Okay, here's a definitive answer, proven by three years' nine hours a day despatching on my K7.....and 16 years' total ownership.
Inserts like the PVC ones do have a limited performance, but don't eradicate the damping issue, and WILL selfdestruct if you hit a really big pothole....or fender! Also, the seem to give a harder ride but work by JUST eliminating free movement, which on these old forks isn't well-managed.
So how do you carry out a dirt-cheap modificationthat retains as much length of travel as possible, but also changes the preload of the spring? AND makes the ride stiffer?
Simple - copy the PVC spacers - but in metal tube. That's the first step. Then set them on your bench.
NOW - REMOVE YOUR FORK SPRINGS AND USING AN ANGLE GRINDER REMOVE A FEW COILS OFF THE TOP TO THE EXACT LENGTH OF THE SPACERS!
The function of a spring is not only governed by its gauge (thickness of wire), the stifness of the wire, the spacing of the coils....but ALSO - which a lot of people forget - by it overall length!
So reassemble the springs in the fork, plop the spacers in and you'll find the whole thing is no harder to get the fork tops on than on the standard springs BUT on the road you've altered the preload of the spring by altering its total length inside its working limits. Stiffer fork, AND you've removed the problem of spacers on their own compressing the spring and robbing you of travel.
Ever wondered why modern road bikes use short springs and long spacers? :-) Its NOT because the modern Jap factories can't make long springs LOL
As for fork oil - remember the simplest piece of advice of all - these forks were designed when STRAIGHT monograde oil was used in forks, not multigrade fork oils. Castrol for one still do 20weight and 30weight oils for classic bikes, use this instead. You'll find the equivalent modern-rated multigrade fork oil is runnier, the mongrade is a heavier thicker oil even at the same grade, and is what the fork was designed to use.
P.S. engine oil CAN work, but seems to emulsify and break down even quicker than fork oil :-(
Regards, Phylo