I'd say 'No' to anything slimy on the slip ring, and 'yes' to dp's 'get a new oil seal' thought.
All old mags seem to have a pit on the brass bit where the earth brush runs (it's nearer the slime as beezalex says). Reconditioners turn the brass down to get a good surface - provided doing so doesn't cut too close to the steel pins that hold the brass end in place against the coil. That can be quite a few thou off the diameter sometimes.
I'd replace the drive-end seal, bearings and insulators, all brushes and springs, check slip ring for no ridges and tracking and then know there were no mechanical faults. I might also replace the points and/or backplate. If it still didn't work correctly, I'd either put a new condenser in, which is a lot of work relatively, or get a rewound exchange armature which addresses the 2 questions which are hard to answer - is the condenser dead or are the windings breaking down? Or both? I swear by magnetos and would never be without one where there's a choice - but they do have to be in decent shape.
As to Classic Solutions . . .???? Seem to have gone awol as zitman said. But Tony Cooper, Sean Hawker and SRM can help, as can Dave Lindsley. Shouldn't be a problem to solve whatever aileth.