> I need to know what kind of grease is used
> in assembling a car's distributor?

What does the manufacturer's service manual state?
That's the first place I'd look.

> It looks like the gear and the bottom half of the shaft
> gets lubricated by engine oil, because there is
> a short spiral channel in the bottom of the shaft.

> But up on top where the distributor mechanism is 
> located, there is a small seal and I think it was packed
> lightly with some sort of grease.

The seal may be there to prevent engine oil (liquid/fumes)
from leaking into the distributor cap area.

On the engine side of the seal, you could use pretty much
any grease; wheel bearing grease, molybdinum disulfide,
or distributor point grease (kind of like vasaline with a
higher temperature tolerance).  I've only gotten point
grease in little capsules when I bought replacement sets
of contact points.

On the distributor cap side of the seal, I'd keep it dry
or very nearly so.  Tiny dabs on the point rubbing block
(if old mechanical points) and on the contact point where
the distributor plate touches the housing (usually slight
movement due to vacuum advance mechanism).

If it's new enough(*) that the points function is outside
of the distributor, then I'd keep the portion above the
seal completely dry.

(*) new enough that engine shaft position is sensed by a
    magnetic pickup on the flywheel or similar and advance
    done entirely in the engine control computer but old
    enough that there's only one coil with a distributor
    to route the energy impulse to the correct sparkplug.

You could ask at a decent auto parts store (not Kragen,
not Autozone, nor any big chain) what they recommend,
buy it, and try it.  At some point, you pays your money
and takes your chances. :-)
						Lee Jones

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