Hey surffoils
Somewhere on here there are some pictures of an oil trap to catch exhaust oil, if I remember correctly.
I just exhaust mine into a plastic bottle and pour it back in after each pull, but you can let gravity do it for you if you exhaust up into a vertical chamber with some kind of baffle to allow the oil to cool and condense before it gets into the atmosphere.
Can't recommend oil, I just use a light synthetic engine oil as I figure my pump uses a piston and bore like an I.C. engine. I will phone krisbow who make the exact same pump you show over here and ask them on monday.
http://www.krisbow.com/product_info.php?products_id=5973wonder if your pump was made in indonesia?!